(Bloomberg) – Wall Street’s attempt to rebound after one of the clearest stock corrections left the most influential market on the market on Monday.
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More than 90% of S&P 500 companies have increased, but the Megacaps cohort like Tesla Inc. and Nvidia Corp. underwent renewed pressure. Although there is an almost universal belief that technology giants are always the highest quality companies in the world, the question is whether these advantages have already appeared in the share price, and can now be threatened – if big bets on artificial intelligence are not paid as expected and that the economy slows down.
A few days before the decision of the federal reserve, economic data did not do much to modify the bets on the path of monetary policy. Monetary markets do not see rate reductions before June or July. A feeling of waiting can emerge from decision -makers this week, in their first assessment of how President Donald Trump’s trade policies have an impact on the economy.
“While the financial markets seem to stabilize, investors are struggling to decide to buy the drops or sell the rallies in an environment of exceptionally high political uncertainty,” said Jason Draho at UBS Global Wealth Management.
The secretary of the Treasury, Scott Bessent, a former hedge fund manager, said that he was not worried about the recent slowdown in actions while the United States sought to reshape his economic policies.
“I have been in the investment sector for 35 years and I can tell you that the corrections are healthy, they are normal,” said Bessent on the meeting of NBC on Sunday. “I do not worry about the markets. In the long term, if we set up a good tax policy, deregulation and energy security, the markets will be very good. »»
For Bret Kenwell in Etoro, despite the mixed update on retail sales, the data could give investors a careful optimism that we may see a more resilient consumer in the coming months.
“If the consumer can hold on, there is a good chance that the economy can also,” he said.
A sign of stability emerges after the S&P 500 plunged into a correction last week: the traders abandon the bets that another deep slide is ahead.
Even before the reference for American actions rebounded strongly on Friday, the group has largely discharged its hedges S&P 500. The cost of options protecting against a 10% drop in the S&P 500 ETF Trust SPDR in the next three months has plunged close to the lowest level since 2023 compared to contracts that benefit from a 10% rally, the data compiled by Bloomberg show.
