Last month alone, out of twenty-one sessions of trading the US indices recorded fourteen new highs on the S&P500 and only six days where the world’s leading equity index ended in red. In the Bulls offensive In the Bulls offensive, the key role came from technology sector, which made another major contribution to Nasdaq‘s gains of 1.04% yesterday, a behaviour that has been common in recent months with a particular performance from the so-called FAANG. This group doubled the valuations achieved by the all-encompassing S&P500 and are now worth about 18 percent of the index, and the gap is no longer because Apple, Microsoft, Alphabet, Amazon and Facebook but makes up the five hundred largest listed companies, a power relationship like never before.
Today, despite a downward opening, indices were on track for new highs, but news that US tariffs on Chinese imports will remain in effect at least until the elections spoiled the Bulls’ party, although this is not a surprise, as I have already pointed out. This partial agreement is a measure to pause the escalation of the conflict rather than resolving it. The good performance of the financial sector should be highlighted after the good results presented by J.P. Morgan Chase and Citigroup.
Photo by Kido Dong.
