Wall Street rebounds on cheap buys on “tech”, Corporate News

PARIS, June 17 (Reuters) – The New York Stock Exchange opened higher on Friday the day after the three main Wall Street indices fell sharply amid fears over the economic situation after the sharp acceleration of monetary tightening by several major central banks this week.

In early trading, the Dow Jones index gained 79.58 points, or 0.27%, to 30,006.65 points and the broader Standard & Poor’s 500 rose 0.55% to 3,687.09 points.

The Nasdaq Composite took 0.98%, or 103.94 points, to 10,750,043.

The positive trend remains fragile, however, with the S&P 500 now in “bear market” territory and the Nasdaq heading at this point towards a 6% plunge for the week as a whole.

After the unprecedented 75 basis point rate hike by the US Federal Reserve (Fed) on Wednesday, the Swiss National Bank (SNB) surprised Thursday by raising its key rate for the first time in 15 years by 50 basis points, while the Bank of England chose to raise its rate to 1.25%.

Of the major central banks, only that of Japan opted Friday, as expected, for a status quo, but said to monitor the economic impact of fluctuations in the yen.

“Even the most vocal proponents of buying equities are beginning to realize that inflation is a threat, with central banks poised to drag the world into a slowdown and eventual pullback to tackle (inflation) “, explains Jeffrey Halley, analyst at OANDA.

In values, the giants of new technologies such as Apple, Amazon and Microsoft, which had suffered in previous sessions from the rise in bond yields, each gained around 1%.

Adobe, the maker of Photoshop, fell 4.4% after posting quarterly and annual revenue on Thursday that fell below market expectations.

In Chinese stocks listed on Wall Street, Alibaba jumped 7.1% in response to Reuters information that the People’s Bank of China has approved the request of its subsidiary Ant Group to create a financial holding company. In its wake, JD.COM, Pinduoduo and Baidu are also wanted.

In terms of economic statistics, industrial production in the United States slowed more markedly than expected in May, with an increase of only 0.2% after 1.4% in April.


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