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US30 – Or the return in force of the “Values”


The US30 The second-oldest stock market index in the globe. It is composed of 30 Wall Street reference businesses. so-called “value” stocks that have been neglected for too long in favour of “growth” stocks, which have taken advantage of the enormous liquidity flows due to the Covid crisis. These same flows resulted in a rise of prices (inflation), which in turn led the US Central Bank to raise its rate, leading to a market pivot favoring the stocks that comprise the US30 This has led to a significant price rebound of around 5%. $33,681.

The US30 It has been able to Break above the downtrend line As market participants had hoped for a more hawkish monetary policy, they now anticipate interest rates slowing to 0.5 percentage points by December. The Fed’s monetary policy seems to be having an effect, inflation in October fell to 7.7% year-on-year, yesterday’s Producer Price Index (PPI) figures also slowed to 0.2% in October.

source: cmegroup

Economists and Fed members had anticipated the fall in margins. Supply chains have been loosening, demand has fallen and inventories have risen, leading to more price competition. Lael Brainard, Fed vice president said, “You…

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