Wall Street is marking time after a huge 20% rebound in 3 weeks
US stock markets are marking time in the near term after three strong weeks of gains, notably the Dow Jones, which rose 17% from its October low.
Equity markets benefited from investor speculation about possible less-than-expected monetary tightening by the Fed after a dampening in hawkish rhetoric from some Fed members and a sharper-than-expected slowdown in US inflation last month.
Nevertheless, market operators are aware of this important rally and are digesting recent gains. Wall Street has been shaky since the beginning of the week, with the exception of the Nasdaq 100, which is benefiting from the recovery in certain technologies.
However, consolidation could give way to a new leg of the decline as the Fed may postpone recent speculation about less monetary tightening and as the economic outlook continues to darken. Despite fairly robust economic statistics, leading indicators such as the inverted yield curve paint a rather bleak picture for 2023.
Daily Dow Jones Price Chart – Key Levels