Wall Street is heading for a week of lethargy – Teletrece

AFP

After an outstanding week of a speech by the Fed that eventually proved inconclusive , Wall Street does not seem susceptible to encouraged in recent sessions August and early September.

in the week closed on Friday, the Dow Jones industrial average fell 0.85%, the Nasdaq, dominated by technology stocks, yielded 0.37% and the S &. P 500 fell 0.68%

“it’s amazing,” said Chris Low of FTN Financial, noting that the S & P 500 He never had so weak volatility in almost 50 years. “It’s the bag more calm I’ve seen,” he said

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full in August, month of summer holidays without very marcantes indicators and just results of small businesses for investors, expected that the speech Friday’s Fed president Janet Yellen, marked a turning point .

However “the mountain gave birth to a mouse “, said Gregori Volokhine of Meeschaert Financial Services speech ” virtually had no impact “on Wall Street, he added.

When investors wonder whether the Fed will decide to start dismantling this year its support to the economy, the message Yellen gave just some nothing definite signs.

on the one hand said the economy is strong enough to support a gradual increase in rates but also gave no suggestion from when begin the increases.

Yellen said in recent months increased reason to tighten monetary policy in the United States by gradually increasing rates but also did not depart from the caution.

“Our ability to predict the evolution of the rates is very limited “because it must respond” to disturbances that can shake the economy, “he said.

Lighten, however, was the number 2 of the Fed, Stanley Fischer who said the employment data Aug. much weight to decide something on rates when the end of September the monetary policy committee of the entity meets.

data labor market on Friday and probably will not have an immediate impact on Wall Street until Tuesday 7, a day after the labor day holiday in the United States.

“The real test will be when people return (the holiday) and get to work,” Volokhine said.

“There can be that there are more influential on markets judgments. are they too high or not? growth accelerates or decelerates? for now, there is background noise, “he added.

the serenity of Wall Street, which remains near record levels, can become a challenge for the Fed itself, because the entity could consider that investors are able to survive without the crutch mean low rates.