The American stock exchange is trying to make up for losses. It promises to be a successful session
On Tuesday, at the opening of the New York stock exchange, the main indexes shone green, which is not surprising, considering that timely contracts gained over 1 percent in the morning. At the opening of the S&P 500 it gained just over 1 percent. and reached 5213.65 points Nasdaq Composite walked up by 1.3 percent. and reached 16077 points, Dow Jones gained 1.1 percent. and his quotations amounted to 38580 points.
On Monday, the US stock exchanges – unlike in Poland – functioned. At Wall Street, the Monday session ended with strong drops in the main indexes. Investors do not like the US President's attack on the Fed President Jerome Powell, as well as uncertainty around Donald Trump's customs policy. The Industrial Dow Index at the closure fell by 2.48 percent, S&P 500 by 2.36 percent, and Nasdaq Composite by 2.55 percent.
On the market, there is no fear of the possibility of removing from the position of Fed President Jerome Powell by US President Donald Trump after Trump published an entry on Truth Social that the economy will release if the Fed does not reduce interest rates. In the latest of many recent posts, he called the head of the Fed “Lord late” and “great loser”. Last week, Trump suggested that he was considering the possibility of releasing Powell.
– If Powell was released, markets would certainly interpret it as a pro -wire signal. And this could lead to an increase in long -term interest rates and weakening the role of the American dollar as the world reserve currency – said Elliot Dornbusch, director of investment at CV Advisors.
In the event of the dismissal of the head of the Fed, markets could be afraid of the independence of the American Central Bank and for institutional stability and predictability in the USA. Over the past week, assets considered safe, in particular gold, have increased significantly. At the same time, the dollar and American shares prices fell, as did the tax bonds there (i.e. their profitability increased). This is an extremely rare phenomenon when American assets recognized as Safe Havens (safe marinas) lose during market uncertainty.
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– These movements cause existential anxiety among investors, which is inevitably pregnant at actions and risk attitude. USA shares are in the crosshairs, a The market values a political risk bonus for American assets – said Kathleen Brooks, director of research at XTB.
“The American president's actions from a market perspective are a complete failure, By causing a stronger effect of “US sales” (Sell America, we write about this phenomenon here – ed.), The mass outflow of capital from American shares and bonds towards “the rest of the world”. We think that in this situation the current rhetoric cannot be kept much longer, threatening to complete Trump's compromise. (…) The event of the day will be the evening results of Tesla, which the market approaches with great nervousness (yesterday the company lost 5.75 percent), but in the current environment it is strictly American problem” – Kamil Cisowski, director of the investment and advisory team at the Xelion investment home wrote in the morning commentary.
See also: Donald Trump is preparing a coup in the Fed? The White House “analyzes” the matter
