Wall Street ends on a note of tentative – The Point

Wall Street ended on a tentative note of Wednesday, only managed to partially benefit the rebound in U.S. growth and a decision considered reassuring, although not surprisingly, the U.S. monetary policy. According to the final results at the close, the Dow Jones yielded 0.19% or 31.75 points to 16 880.36 points, while the Nasdaq, dominated by technology, gained 0.45%, or 20, 20 points, 4 462.90 points. The broader S & P 500 ended barely in positive territory, nibbling 0.12 to 1 970.07 points.

After starting the session up, thanks to the announcement of a stronger than expected U.S. growth indices fluctuated around equilibrium. Aided by the results considered dazzling social network Twitter, which soared by nearly 20%, the Nasdaq remained firmly rooted up.

Economic growth in the United States has clearly rebounded in the second quarter, beyond the expectations of analysts: the U.S. gross domestic product (GDP) increased by 4% from April to June Its decline in the first quarter was also revised to 2.1%, against 2.9% originally estimated.

nervous investors

first met with enthusiasm, this new subsequently made investors nervous fearing losing so early ultra-accommodative manna easy money says that monetary policy in the United States has made it accessible to markets. The release of the U.S. Federal Reserve (Fed), after two days of meeting its Monetary Policy Committee (FOMC) has somewhat alleviated these concerns. If the central bank has decided, as expected, to continue its program of gradual reduction of support to the economy, it has also kept its key interest rate to near zero levels, promising they will remain “for a considerable period of time “after the end of monetary stimulus. Developments, however, the Fed, which control the rise in prices is one of the first missions, noted in a statement that inflation closer to its target of 2%.

“The Fed wants to please everyone, both hawks and doves”, proponents of strict, and those who advocate a more flexible monetary policy line, said Gregori Volokhine , portfolio manager at Meeschaert Financial Services. “She does not want to scare markets and reassured that she will continue to have an accommodative policy, and on the other hand, it also reassures that she is attentive to inflation and that it remains vigilant, “he has said.

On the labor market, two days before the monthly figures for the month of July, operators have also taken note of the slowdown in growth in hiring in the private sector this month.

The bond market fell sharply. The yield on 10-year Treasury rose to 2.554% against 2.462% Tuesday, and the 30-year 3.310% against 3.222% yesterday.