Wall street dismissed the last session of the week and also the last business on your calendar in the month of May with a bullish tone. The purchases returned to the New York indices despite the confirmation of the jump from inflation to its highest rates in the last 13 years. Investors buy the official speech of the Fed and immunize themselves to this vertical increase in the cost of life.
The inflation rate according to the PCE index has shown a year-on-year increase of 3.6% in April. A percentage significantly higher than the 3.6% expected by the consensus of analysts, but which is in line with the 4.2% published a few weeks ago by the Statistical Office of the Department of Labor. A circumstance that has allowed investors to trust the ability of the Fed to govern the situation.
A position that translated into advances for the three major US indices. The Dow Jones it rose 0.2% to reach 34,500 points. 0.1% added the S&P 500, looming over 4,200 points. Meanwhile, the technological Nasdaq it rose by 0.2% which placed its graph touching 13,700 points.
Along with the inflation data, other macroeconomic indicators were coming to light that helped the return of purchases in the last trading session for Wall Street this fifth month of the year. And it is that next Monday 31 there will be no negotiation for the memorial day celebration.
Thus, the sector activity index Chicago PMI rebounded with unexpected strength to 75.2 points and that of University of Michigan Trust it reached 78.8 points. Similarly, although personal income fell sharply in April, they did so less than expected: 13.1% compared to 14.1% expected. And furthermore, the personal spending rose 0.5% against the tide.
Assaults and results
In the corporate arena, the return of speculative assaults on several companies with financial difficulties was translating into drops for several of them. In front, the chain of cinemas AMC EntertainmentDespite the pretext of reopening theaters in some countries of the world, there was a drop of 1.5%.
As regards those that this Friday fitted quarterly accounts, very different consequences. While HP Inc it fell 8.9% after having disappointed with its accounts for the second quarter, it rebounded 5.7% after having beaten business forecasts and having improved its annual expectations.
1.5% left the shares of Boeing after learning that he would have paralyzed deliveries of his 787 Dreamliner, according to The Wall Street Journal. A decision that would add new delays for the receipt of aircraft from its customers.
Meanwhile, all eyes turn to the White House. There this Friday the president Joe Biden reveals his tax plan for next year, which will foreseeably include a proposal to raise public spending to $ 6 trillion. A volume that would raise the fiscal deficit of the world’s largest economy above $ 1.3 trillion over the next decade.