Wall Street continued its momentum from Friday, and it is not a surprise after an article in the Washington Post which believes it knows – via the indiscretions of its advisers – that Donald Trump would abandon his plan for prohibitive universal customs duties to target only ‘crucial imports’.
This has reduced tension and fears that import taxes will fuel a new inflationary spiral.
Everything was going well at mid-session, with spreads ranging from +1 to +1.5% for the S&P500 and the Nasdaq, but some profit-taking materialized during the last hour.
The Dow Jones closed in the red with -0.06%, the Nasdaq Composite gained 1.25% (the Nasdaq-100 only 1.1%) and the S&P500 had to be content with 0.55%… with 270 stocks in decline (once again, the advance/decline ratio is negative).
A large part of the increase in the ‘S&P’ results from frenzied purchases on Nvidia which soared +3.4% to $149.3 (new absolute record) for a capitalization of $3,660 billion, thus coming on the heels of that of Apple ($3.700 billion, with a gain of +0.9% this evening).
The bond market is deteriorating again (perhaps due to a ‘risk-on’ returning in force on Wall Street) with T-Bonds which are tightening on average by +2 basis points over all long maturities with 4.835% on the ’30 years’, 4.625% on the ’10 years’… while a slight relaxation of -1 basis point takes place on the ‘2 years’ towards 4.269%.
As a reminder, US stock markets will be closed on January 9 for the national day of mourning in honor of former President Jimmy Carter, who died on December 29 at the age of 100.
The week which opens will also be marked in particular by the publication, on Wednesday, of the ‘minutes’ of the monetary policy meeting of the American Federal Reserve, and on Friday by the publication of the ‘NFP’ (monthly employment report).
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