Wall street rises to close a very volatile week, from the records of Monday of the Dow Jones and the S&P 500, to the falls as of Tuesday. All this in a few days in which geopolitical tensions, with Afghanistan as the protagonist, and the economic data, which are influenced by the Delta variant expansion Around the world, and mainly in the US and China, they have influenced investors.
If you look at the accumulated of the last five sessions, all three indices are negative, with falls ranging from 1.3% to 1.7%. The most affected, despite the rebound experienced in the day this Thursday, the Nasdaq.
All this in a week marked by Federal Reserve (Fed) minutes, which confirmed that the central bank is already seriously considering start reducing your asset purchases ($ 120 billion a month) this same year. The famous 'tapering' is on the minds of traders, who are already waiting for more keys on monetary policy in the central bank symposium to be held next week in Jackson hole.
The president of the Dallas Fed, Robert Kaplan, what will be raised his vision of 'tapering' depending on the advance of the coronavirus. "So far it is not having a material effect" on consumer activity, he said, but "it is having an effect on the delay in returning to the office, it is affecting the ability to hire workers due to fear of infection. ", according to 'Reuters'.
In this scenario, 'strong hands' of the market as Goldman sachs have cut their growth forecast for the US and at the same time have raised their estimate of inflation, which would leave the 'hands tied' to the Fed when it comes to continuing to support the economy, at a time of uncertainty about growth and prices on the rise.
"With the arrival of the Fed tapering as the delta variant continues to spread, the transition from liquidity / policy to more mid-cycle markets means we can experiment a more bumpy ride in the future ", have affirmed the Barclays strategists.
On the other hand, it should not be forgotten that the S&P 500 has been trading for 196 days without a 5% retracement, the fifth longest streak in 50 years. Analysts Bank of America explain that "history suggests caution against this tranquil backdrop, as Similar periods of high returns have preceded major fragility shocks for shares ".
Therefore, it would not be strange for the market to use some of the uncertainty about growth, such as the impact of the Delta variant, to make a technical correction that would be totally normal, within the current upward trend of North American equities.
At the present time of the day, there are no outstanding economic references. At the business level, Manzana has delayed until January the return of its employees to the offices in the US, due to the rebound in infections by Covid-19.
In addition, Tesla picks up slightly after Elon Musk, CEO of the company, announced Thursday that the electric car maker will likely will launch a prototype humanoid, the 'Tesla Bot', next year.
In other markets, oil West texas it falls 1.53% to $ 63.53. In addition, the euro it depreciates 0.04% and changes to $ 1.1679. And the ounce of gold rises 0.15% to $ 1,785, while the profitability of the 10-year American bond relaxes to 1,238%. Finally, the bitcoin up 1.93% to $ 47,563.
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