The saying “Buy the dip”, which is often applied in the field of cryptocurrencies, also applies to Wall Street and tech stocks. After the falls of recent days, buying has returned, though the Nasdaq suffered a new setback yesterday.
Recovery after Powell’s words
The words of Fed Chairman Jerome Powell also contributed to the recovery on Wall Street. During a hearing in the Senate in recent days, Powell explained how the Federal Reserve intends to deal with the current economic scenario, anticipated raising interest rates to combat inflation and also announced the end of tapering by March.
In short, the US economy is approaching a return to normality after the pandemic crisis. Covid-19 has not been defeated for good, as the Omicron variant is circulating in the US, but according to Powell, it will lead to a slowdown in growth, but not to a new downturn.
The performance of tech stocks on Wall Street
As mentioned above, tech stocks on Wall Street have been on an upswing, which only came to a halt yesterday. The Nasdaq Composite lost 2.51%.
Among the worst performers were Amazon, which lost 2.4%, Microsoft, which lost 4.2%, and Nvidia, which fell more than 5%. Apple, Amazon, Meta, Netflix and Alphabet were also down.
Markets await banks’ quarterly reports
European exchanges opened lower today, following yesterday’s declines on Wall Street, with Asian exchanges also affected. Macroeconomic data also weighed on the US stock markets yesterday, including the increase in the producer price index, which jumped 9.7%.
Quarterly data from major US banks are now expected. Data from Citigroup, JP Morgan and Wells Fargo will be released today.
Meanwhile, US Futures are positive after yesterday’s negative close. At around 11:30 AM CET, Futures on the Dow Jones rose 0.26% to 36,086 points; Futures on the S&P 500 advanced 0.21% to 4,662 points, while Futures on the Nasdaq rose 0.11% to 15,505 points (Lapresse data).