Stock market: Wall Street closes without direction, lacks catalyst


(Photo: 123RF)

MARKET OVERVIEW. The New York Stock Exchange closed Monday without any direction, without a catalyst, awaiting news on U.S. inflation this week, while the session was buoyed by a resurgence in volatility in viral stocks like GameStop.

To (again) consult market news

Stock market indices at close

in toronto, S&P/TSX lost -49.76 points (-0.22%) to 22,259.17 points.

In New York, S&P 500 closed -1.27 points (-0.02%) at 5221.41 points.

THE Nasdaq rose by +47.37 points (+0.29%) to 16,388.24 points.

THE DOW retreated -81.20 points (-0.21%) to 39,431.64 points.

THE stud closed down $0.0001 (-0.0176%) at $0.7316.

THE oil rose +$1.01 (+1.29%) to $79.27.

L’gold retreated $-31.50 (-1.33%) to $2,343.50.

THE bitcoin collected +$1,718.85 (+2.80%) to $63,089.78.

Context

“Wednesday’s price index release is more important than anything that happened today,” said Art Hogan of B. Riley Wealth Management.

If the CPI is in line or slightly below expectations, he said, “the market will celebrate.” “However, if price growth is sharper than expected, the market will experience the downward pressure that occurred in April,” the analyst predicted.

Meanwhile, “it’s normal to end up without direction when you’re without a catalyst,” sums up Art Hogan, who was contacted by AFP.

Briefing.com forecasts a 0.3% increase in prices compared to +0.4% in March in the United States.

“This will be an important week that will decide whether the S&P 500 and Nasdaq are revived to new highs or retreat,” said Briefing’s Patrick O’Hare.

Investors will also be watching the performance of retail sales for April that day, a good way to gauge the health of the consumer that drives the U.S. economy.

These two main data can influence the direction of monetary policy. Markets are hoping to see both a slowdown in price growth and a soft landing in consumption, which would strengthen prospects for a rate cut by the Federal Reserve (Fed).

Highlights of the session were a resurgence of intense volatility in viral stocks, particularly GameStop, the video game store title that rocked Wall Street in early 2021, driven by a flurry of online investors.

GameStop (GME) gained 74.52% to 30.47 US dollars ($ US), boosted by the reappearance on social media – for the first time in three years – of one of the stock traders behind the speculative frenzy around GameStop in 2021.

With the nickname “Roaring Kitty”, he wrote about the economic future, but it is uncertain.

“We’re seeing the shadow of a rebound” at GameStop, a “distraction,” still assures Art Hogan, who doesn’t believe the increase will last too long.

Other so-called “memes” or viral events such as cinemas AMC (AMC, +79.73% to $5.23) also benefited from the current.

Reddit ( RDDT ), a forum platform where investors communicate online to offset funds that bet short on their favorite stocks, had a good day (+8.78% to $58.23).

Earnings season is also coming to an end, but some retail giants are set to announce theirs this week. That’s the case with Tuesday’s DIY Specialist Home Depot (HD, -1.58% to $340.96), from the Chinese giant also listed on Wall Street Ali Baba (BABA, +5.70% to $84.60) and also Thursday’s retail number one Walmart (WMT, -0.12% to $60.41).

While the quarterly accounts of these megadistributors were awaited, other big names in the sector fell target (TGT, -1.37% to $160.90), Costco (COST, -1.53% to $775.15) or Dollar General (DG, -2.14% to $137.93).

Semiconductor specialist Holding the arm (ARM) rose 7.71% to $117.23. The champion of microprocessor architectures, the British branch of Japanese group Softbank, is to launch a division specializing in the production of chips for AI, with a prototype planned for spring 2025, according to information published this week by the Japanese economic daily Nikkei.

In the bond market, 10-year rates were steady at 4.48%, up from 4.49% on Friday.

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