Wall Street rebounds moderately this Thursday, after closing on Wednesday with sharp falls. Investors sold aggressively after the Fed's 'hawkish' rate cutwhich anticipated fewer interest cuts next year. The experts of Danske Bank they comment that «Powell issued a clearly aggressive messagehighlighting that the flexibility cycle has entered a «new phase«and that, barring major downward surprises in the data, the Fed seeks to slow the pace of rate cuts starting in January.» In practice, the market now anticipates only one or two rate cuts by the Fed next yearwhich explains the strong market correction yesterday, led by the technologymore sensitive to higher interest rates. As Swissquote Bank analyst Ipek Ozkardeskaya says, «Sometimes the truth is hard to say, and even harder to hear.«. This expert also highlights that the Fed «started cutting three months ago with a 50 basis point cut,» and adds that «I have rarely seen a Fed team act in this way.» so erratic way«. For his part, Jeremy Siegela professor at the Wharton business school and a well-known expert in the United States, considers that the correction on Wall Street was «healthy«, as the Fed's projection offers investors a «more realistic situation«. «The market was almost at a uncontrolled situation…and this made him realize that We are not going to have such low interest rates.«as investors had discounted when the Fed began its easing cycle, as commented on 'CNBC'.
NEWS OF THE DAY
The other point of interest for investors is in the macro agendawhich also had notable references this Thursday, such as Third quarter GDP, which has been revised upwards to 3.1%, or the weekly unemployment data, that have fallen below expectations. However, the main course will arrive on Friday, with the November PCE consumption deflatorthe Fed's preferred measure of inflation, and for which a general rate rebound up to 2.5% from 2.3% the previous month, and that the underlying rises slightly from 2.8% to 2.9%.
MICRON FALLS
On the business front, the actions of Micron Technology they sink more than 13%. The semiconductor manufacturer surpassed forecasts with its results last night, but disappointed with its guidance for the next quarter. On the opposite side, the actions of Accenture they shoot up 7% after The company will raise its revenue forecasts for the whole yearso it now expects turnover to grow between 4% and 7%, while before it estimated the increase between 3% and 6%.
OTHER MARKETS
In other markets, oil West Texas rises 0.91% ($71.22) and the Brent advances 0.6% ($73.88). For his part, the euro appreciates 0.47% ($1.0401) after devaluing sharply in the previous session, and the ounce of gold falls 1.62% ($2,610). Furthermore, the 10-year American bond yield rebounds to 4.552% and the bitcoin rebounds 1.44% ($102,104).