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Expect tapers to start this year punishing Wall Street - Stock Exchange

Wall Street is gaining ground in the last minutes with the help of retail. But there are super bubble alerts – Stock Exchange

The Dow Jones Industrial Average closed 0.29% higher at 34,364.50 points after six consecutive sessions of declines. On January 5th, he remembered that he touched a level he hadn’t reached before at 36,952.65 points.

The Standard & Poor’s 500 advanced 0.28% to 4,410.13 points. The all-time high in daily trading was reached on January 4th at 4,818.62 points.

For its part, the Nasdaq Technology Index rose 0.63% to settle at 13,855.13 points. Since Wednesday, this indicator has been in correction territory (losing more than 10% of its recent rally) and today’s gains were not enough to break out of this level.

The all-time high on the Nasdaq at 16,212.23 points, set on November 22.

During the four sessions of the past week (US stock markets were closed on Monday to celebrate Martin Luther King Jr. Day), Wall Street’s major indexes have always ended in the red. The dao was the longest in the negative zone.

The pressure on trading for most of today’s session has been mainly tech companies – which have taken on heavy debt in the past two years, due to lower interest rates, and which now fear the impact of the Fed’s increase in key interest rates that may have already started in March.

Concerns that the Federal Reserve will raise key interest rates in March and geopolitical tensions arising from Russia’s military buildup on the Ukrainian border are among the main sources of market tension. And high inflation doesn’t help either.

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At today’s session lows, Wall Street was on track for its worst day since October 2020, with the Nasdaq down 4% and the Dow down more than 1,000 points.

In the last five minutes of normal trading, all three indexes reversed, largely at the expense of listed retailers such as Gap, Bed Bath & Beyond and Dollar Tree.

However, stress factors remain. Investors are now focusing their attention on the two-day Federal Reserve meeting, which begins tomorrow, and the presentation of technology bills.

After Netflix on Friday, it’s IBM’s turn today to report on its findings. Tomorrow it will be Microsoft and it will admit Apple and Intel in the market for the rest of the week.

A painful period that “will not end well”

The start of the year has been bad for Wall Street, and one of the most influential managers of hedge funds (hedge funds), citing CNN, says that this could be the beginning of a very difficult period for investors.

Jeremy Grantham — co-founder and principal investment strategist at Grantham, Mayo, and Van Outerloo (GMO) — emphasized in a report released today, titled “Let the wild noise begin”that stock markets are in a complete “super bubble” and that this “will not end well”.

Grantham, who has managed GMO Investments since its founding in 1997, was also — no doubt — bearish in stock markets in 2000 and during the 2008 financial crisis.

“Good luck! We’ll need it,” wrote Grantham, whose company has about $65 billion in assets under management.

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