Wall Street ended up for this first session of the second half of the year… which seems to be a continuation of the momentum of the second quarter with a new closing record for the Nasdaq (+0.82%) which completely reversed course over the hours to end at 17,880.
The Nasdaq-100 gained +0.6% in the wake of Tesla +6.5%, MongoDb +5.4%, Zscaler +3.4%, Apple +2.9%, Microsoft +2.2%, Sirius and Amazon +2%, Marvell +1.6%…
Conversely, the Dow Jones, which was up +0.7% around 3:35 p.m., finished painfully with a rise of +0.13% and the S&P500 was content with +0.27% (no record at stake… it would have been necessary to go back over the 5,500 point mark.
It seems that the deterioration of the bond markets weighed on the trend from midday… on the other hand, the ‘technos’ completely ignored this handicap, while they are known to be more vulnerable to rising rates.
Wall Street largely ignored the first statistic of the second half of the year: the contraction in the American manufacturing sector increased slightly in June, still reflecting weak demand.
This is demonstrated by the Institute for Supply Management survey, which showed an index of 48.5 last month, down 0.2 points from 48.7 in May.
The new orders component improved to 49.3 from 45.4 the previous month, but the production component fell to 48.5 from 50.2 the previous month.
The employment sub-index also fell to 49.3 from 51.1 in April.
Just before the ISM, S&P Global had announced that its manufacturing index had come out at 51.6 for the past month, against 51.3 in final data for May.
Mid-session T-Bonds seem just as badly oriented as our Bunds with a tension of +8.5Pts towards 4.476%, which is quite simply their worst level since the close of May 31.
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