Wall Street recovers after worst week in recent times
Wall Street indices opened higher, recovering from what was the worst week in months, as investors wait to see the impact of possible tax changes on corporate profits and the effects of inflation on monetary policy.
The S&P 500 is gaining 0.7%, to 4,489.50 points, followed by the industrial Dow Jones, which advances 0.59%, to 34,810.46 points. Along the same path, the technological Nasdaq, which rises 0.33%, to 15,165.9 points.
In companies, the highlight this Monday is Apple shares, which advanced 1.24% to $150.81, on the eve of its annual event, where it is expected to present new iPhones and updates for AirPods and Apple Watch.
- Central Bank of China: We will continue to crack down on cryptocurrencies
- US is the only G7 economy to have recovered from the pandemic
- Inflation in Germany hits historic highs in August
- Nubank targets valuation of up to $100 billion with upcoming IPO
Last week, New York indices lost between 1.6% to 2.2%, with the S&P 500 sinking for five straight days after a rise in producer prices in August and a drop in subsidy requests unemployment that raised concerns that the Federal Reserve (Fed) will start cutting back on stimulus this year.
“There are some inflation numbers that will be released this week and, in addition, the market will be keeping an eye on next week’s Fed meeting,” says Thomas Hayes, of Great Hill Capital in New York, quoted by Reuters: “The expectations now they are that the September meeting will be inconsequential, since only in November will there be concrete plans for a gradual reduction [in stimulus]”.
Still on investors’ radar is the Biden Government’s plan to increase corporate taxes. Democrats are expected to propose an increase from 21% to 26.5%, according to sources familiar with the matter.