Wall Street is marking time after a major rebound of 20% in 3 weeks
US stock markets are marking time in the short term after three strong weeks of gains, particularly the Dow Jones which rebounded 17% from its October low.
Stock markets benefited from investor speculation of possible less-than-expected monetary tightening from the Fed following a moderation in hawkish rhetoric from some Fed members and a sharper-than-expected slowdown in the US inflation last month.
Nevertheless, aware of this important rally, market operators are digesting the recent gains. Wall Street has been rocking since the beginning of the week, with the exception of the Nasdaq 100 which is benefiting from the rebound of certain techs.
Consolidation could, however, give way to a new leg of decline, since the Fed could postpone recent speculation of less monetary tightening and because the economic outlook continues to darken. Indeed, despite rather resilient economic statistics, leading indicators like the inverted yield curve paint a rather gloomy picture for 2023.
Daily Dow Jones Price Chart – Key Levels