Technical factors allow Wall Street to recoup some of Monday’s losses

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Technical factors allow Wall Street to recoup some of Monday's losses

Final results show the selective Dow Jones Industrial Average gained 1.62% to 34,511.99 points, the tech Nasdaq gained 1.57% to 14,498.87 units, and the broad S&P 500 rose 1.52%, at 4,323.06.

For Peter Boockvar, Head of Investments at Bleakley Advisory Group, given the lack of announcements or relevant macroeconomic indicators, this shift was of “technical” order.

By the way, he cited the decline in yields on US government bonds, particularly 10-year bonds, which briefly fell below 1.13% for the first time since February, prompting an automatic reaction.

“The algorithms reacted and triggered the purchases” of securities, he detailed.

The move was fueled by traders willing to buy the dip because they thought they were getting a good deal.

“But from the point of view of the fundamentals”, he relativizes, “nobody explains that one day we are terrified by the covid and the next day nobody cares.”

For Peter Boockvar, questions remain about the strength of the recovery in the United States and around the world.

The only leading indicator of the day, the start of new home construction in the United States in June posted an increase, the effect of which on the market was offset by a drop in building permits, a leading indicator for the construction sector and real estate.

On the business front, the Carnival Cruise Line advanced 8.22%, after predicting that its fleet will be operational again by 2022, although the communication was made against the backdrop of economic conditions, given the daily news on the progress of the Delta variant of the new coronavirus.

The global industry leader has pushed for competition, with Norwegian Cruise Line gaining 7.82% and Royal Caribbean Group 7.75%.

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