Tuesday's session at Wall Street ended with a solid increase in the DOW index and S & P 500 falls and the NASDAQ index, as investors abandoned the shares of technology companies for other industries, including health care companies.
Dow Jones Industrial at the closure increased by 0.91 percent and amounted to 44,494.94 points S&P 500 at the end of the day fell by 0.11 percent and amounted to 6,198.01 points Nasdaq Composite lowered by 0.82 percent until 20.202.89 points The index of companies with medium capitalization Russell 2000 is growing by 0.94 percent. Up to 2,195.20 points The VIX index grows by 0.60 percent, to 16.83 points
Investors abandoned technological giants such as NVIDIA and Microsoft, and instead decided to buy actions of healthcare companies. Amgen and Unitedhealth increased over 4 percent, while Merck and Johnson & Johnson increased by over 3 and about 2 percent, respectively
– It was really risky over the last two months of the quarter. It was about buying actions that had really strong growth factors, such as AI and technology, “said Anthony Saglimbene, the main market strategist of America. “I think we have exhausted this trade,” he added.
In the markets, the expectations that the American economy will withstand the uncertainty related to the schedule of customs tariffs during the presidency of Donald Trump.
– We think it will be a wider revival. I think that with the Fed reduction in the second half of this year or next year, we can see a gradual revival – because now there is quite a lot of accumulated demand, especially in those sensitive to interest rates of the market, “said Mike Wilson, the main strategist of American shares and the director of investment in Morgan Stanley, on Monday in the program” Closing Bell “in CNBC.
The manufacturer of Tesla electric vehicles fell by about 5 percent. After President Donald Trump suggested on a post on the Truth Social portal that the Department of Government Efficiency (Doge) should examine government subsidies received by the companies of President Elon Musk.
Musk criticized the gigantic tax and expenditure act of President Donald Trump, calling it “completely crazy and destructive at the weekend.” This is not the first time Trump and Musk are arguing about the plans of administration expenses, because at the beginning of this year a dispute broke out between them.
The project was adopted in the Senate on Tuesday in voting 51-50. The package now goes to the House of Representatives, which can still reject changes to legislation.
Earlier on the same day, the president of the Federal Reserve Jerome Powell confirmed on the panel of the European Central Bank in Portugal that the FED would probably reduce interest rates again if it wasn't for the tariffs.
He added that all future activities will depend on the data and did not answer directly whether July will be too early for the reduction of the percentage rates.
“As a result, we abstained with actions when we saw how big the duties are, and in principle all inflation forecasts in the United States significantly increased as a result of duties,” said Powell.
Investors are counting on agreements between the USA and their trade partners, because Trump's 90-day postponement of his higher tariffs is expected to expire next week.
Zachary Hill, head of portfolio management in Horizon Investments, however, believes that the market is expecting a lot, so variability can still be on the horizon.
“Investors have definitely increased their positions in the last few weeks, so I think this is a potential threat,” he said in an interview with CNBC.
The actions carried out an impressive return after sharp declines in April, after Trump's tariff policy pushed the S&P 500 near the territory of the bear market.
Since then, the main indexes have recorded a rapid reflection. S&P 500 closed the second quarter with a profit of 10.6 percent, and Nasdaq increased by almost 18 percent. during this period.
The PMI index, specifying the economic situation in the American industrial sector, prepared by S&P Global, amounted to 52.9 points in June. compared to 52.0 points In the previous month – it was given in the second calculation. 52 points were initially estimated.
The US activity indicator in June in June was 49 points. towards consensus 48.8 points and 48.5 points In the previous month – supply management institute (ISM).
According to Jolts survey, the number of unsuccessful jobs in the US survey in May amounted to 7.769 million against 7.395 million recorded a month earlier, after correction. It was expected that the number of free jobs would be 7.32 million.
On the oil market, contracts for WTI in August increase by 0.97 percent. up to USD 65.74 per barrel, and August Futures on Brentures grow by 0.99 percent. up to 67.40 USD/B. (PAP Biznes)
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