Wall street the week ends with moderate gains that barely exceed 0.2% on the last trading day of May, as the New York Stock Exchange will close next Monday for the holiday of the Memorial day (Memorial Day). The monthly balance is not very bright, since the Dow Jones accumulates a 1% rise in the fifth month of the year, while the S&P 500 decreases 0.2% and the Nasdaq loses 2.4%.
In this Friday's session, both the Dow Jones ended up 0.19%, the Nasdaq, which rose 0.09%, and the S&P 0.11%.
In any case, nothing worrisome when considering that the Dow Jones is up 12.6% since the beginning of the year, while S&P is up 11.8% and the Nasdaq has appreciated 6.5%. These balances continue to indicate investors' preference for the cyclical stocks, more associated with economic recovery, to the detriment of growth stocks (technology).
Thus, the consolidation that the American market has registered in the month of May, with the fundamental excuse for concern about inflation in the US, has had a new chapter this Friday with the publication of the PCE index of consumer spending, the Federal Reserve's (Fed) favorite measure for calibrating price expectations.
The General PCE it has rebounded to 3.6% year-on-year in April, slightly above the 3.5% anticipated by the consensus. And the Underlying PCE, the benchmark followed by the central bank, has rebounded to 3.1% year-on-year, above the 2.9% expected, after rising 0.7% in April.
For the moment, the market has not reacted negatively to this indicator, although it confirms the inflationary pressures that is registering the American economy.
Pantheon Macroeconomics analysts highlight that it is the underlying PCE "highest since May 1992", although they add that Fed members will keep their speech that this rise in prices is "transitory", due to "bottlenecks" in supply and demand.
"That line will not change unless convincing evidence emerges of a sustained increase in core inflation expectations and, especially, sustained upward pressures on wage growth. That probably won't be clear, anyway, until fall, "they add.
Dallas Fed Chairman Robert Kaplan has noted that you're ready to start talking about downsizing of the Fed's $ 120 billion a month in asset purchases. And has cited the excesses in the real estate market as one of the reasons to start discussing the now famous 'tapering'.
On the other hand, investors are also attentive to Details of a Proposed $ 6 Trillion Budget for Fiscal Year 2022 to be presented by President Biden's Administration during the afternoon.
In other markets, the Petroleum West texas rises 0.1% to $ 66.93, while the euro it appreciates 0.04% and changes to $ 1.2197. In addition, the profitability of the 10-year American bond relaxes slightly to 1.60% and the ounce of gold down 0.2% to $ 1,894. Finally, the bitcoin falls 5% to $ 36,920.
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