S&P 500: Wall Street’s recovery is confirmed

Wall Street continues its rally as NFP is awaited

The New York Stock Exchange continued its rally yesterday for the second session in a row. Wall Street ended significantly higher again, driven by falling bond yields and a general recovery in investors’ risk appetite after several weeks of pessimism.

The major indexes climbed at the open and never really lost their footing, closing with solid gains and near their session highs. Over the past two sessions, the S&P 500 and Nasdaq have risen 5.7% and 5.4%, respectively.

All sectors in the S&P 500 advanced on Tuesday, with the energy sector (+4.3%) outperforming on higher oil prices, following reports that OPEC+ would consider cutting its output by 1.5 to 2.0 mbd on Wednesday’s meeting compared with earlier reports of 1 mbd, according to the Wall Street Journal.

The rally in the stock markets may continue in the very short term until sentiment normalizes, but the release of the monthly US employment report on Friday is likely to be decisive. The number of job creations should neither surprise too much on the upside nor too much on the downside so as not to create fears of even more aggressive monetary policy tightening for fear of the economy.

S&P 500 Daily Price Chart – Key Levels


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