Wall Street opens by regaining confidence in the opening of the economy

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Wall Street opens by regaining confidence in the opening of the economy

The New York Stock Exchange was trying to bounce back on Friday, showing a dose of optimism about the reopening of the economy, at the end of a volatile week when technology stocks lost ground.

At 2:15 p.m. GMT, the Dow Jones rose 0.57%, the technology-intensive Nasdaq advanced 0.35%, the S&P 500 climbed 0.50%.

After two sessions of losses, the Dow Jones advanced Thursday 0.62% to 32,619.48 points. The Nasdaq, with high technological concentration, had gleaned 0.12% to 12,977.68 points. The S&P 500 gained 0.52% to 3,909.52 points.

Investors seemed Friday to have regained confidence in the reopening of the economy following the good pace of vaccinations in the United States.

The University of Michigan consumer confidence index, released shortly after the opening, hit a year-long high of 84.9 points, better than expected.

“In a press conference Thursday, Joe Biden also indicated that he had doubled his goal of vaccinations to 200 million injections for his first 100 days. This means that the economy is moving faster towards reopening, ”said Peter Cardillo of Spartan Capital Securities.

“This is the reason why Wall Street was able to rebound Thursday” and end up “and this continues Friday morning,” added the analyst.

However, it was not the macroeconomic indicators for February, published by the Commerce Department on Friday, which supported the good mood as last month, household incomes fell 7.1% on the month and their spending fell 7.1% on the month. from 1%. But a wave of exceptional weather, especially in Texas, the country’s energy lung, had paralyzed infrastructure.

“Now, it is a market which is looking forward towards the reopening of the economy,” said the expert from Spartan Capital. “This is why we see banking stocks going better, as well as industrial and energy stocks, in the wake of a rebound in oil prices,” he added.

The banking sector, which also benefited from the announcement of the Central Bank (Fed) the day before authorizing again from the end of June share buybacks and dividend distributions, saw Bank of America gain more than 2%, and Wells Fargo, JPMorgan and Citigroup over 1%.

Airlines also grew by more than 1%, from American Airlines to United to Delta.

Yields on 10-year Treasuries edged up to 1.66% from 1.63% the day before, even though the PCE inflation index, closely watched by the Fed, showed silent inflation in February at + 0.2%. Over one year, it accelerated a little to 1.6%, mainly because of the rise in energy prices.

The session was also marked by the group of shared offices WeWork, which announced on Friday that it was going to make its IPO probably in the 3rd quarter, through a SPAC, these empty shells that facilitate fundraising on the stock market.