The American stock market is growing at the alard of the medium. From the opening of the day, the NASDAQ100 index rose by 0.83%, reaching a level of 13,290 points.
Recently, the mood in the markets worsened, which led to a correctional rollback after the most powerful "bullish" rally, which the indices began 2021. The NASDAQ100 index, which includes shares of technological companies, headed this decline. Increasing the profitability of governmentobaliations against the background of improving the prospects for economic growth and the likelihood of inflation enhancing, forced traders to reorient capital in favor of shares, which will most benefit from the end of quarantine measures. The yield of 10-year treasury bonds of the United States this week has reached maximums per year. Today, yield decreased and is 1.355% against yesterday's 1.363%.
In addition to the speech of Powell, traders continue to follow the reporting of companies. Before the start of trading in the United States, the results of Lowe's Companies, Royal Bank of Canada and Viacomcbs are expected. After the trading is closed, NVIDIA (NASDAQ: NVDA), Booking Holdings and L Brands are reported. Today, sales data will be published on the primary housing market. The American housing market in the pandemic period is growing, partly due to high demand and low mortgage rates. If the data does not disappoint, the NASDAQ100 index may well return to the growth path. Powell can render even greater support for the market. As early afternoon, today the next speech of the Chairman of the Fed Jerome Powell in Congress will take place. On the eve of Powell, the investors had already reassured, sharing the plans to preserve economic policies soft for a long period of time. In particular, the head of Fedreva noted that the restoration of the economy remains uneven and far from completion. The decline in interest rates by the US Central Bank and the construction of government bonds by $ 120 billion per month improved financial conditions and provide support to the economy. The continuing vaccination gives hope for returning to normal living conditions at the end of 2021. Inflation is growing, but it remains below the long-term target in 2%. The regulator plans to keep bets near zero until full-time and inflation will increase to 2% and will not exceed this value for some time.
Artem Deev, Head of Analytical Department Amarkets
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