Doubts about tech company valuations have won the day in reopening the federal government in the United States. On Wall Street, Nvidia suffered drops of 4% and dragged down the Nasdaq, which fell by 2%. Furthermore, the resumption of macroeconomic data releases inspires respect among investors, who choose to reduce risk in a market with high valuations. The Ibex 35 ended the session with a decline of 0.23%, to 16,577.4 points, and ended after three sessions of rise in which it had established consecutive historical records. In any case, in the global calculation to 2025, selective advances are 43.3%.
In Thursday’s session, the market chose to reduce risks due to the possibility of unexpected news in rising valuation environments in the stock market. Experts continually issue warnings about the high prices at which the so-called magnificent seven are trading: Apple, Microsoft, Alphabet, Amazon, Meta, Tesla and Nvidia. The latter, for example, fell by more than 4% in today’s session.
Investors have shunned technology in favor of defensive and value-creating stocks in recent days, and the tone continued to be one of distrust towards the sector this Thursday. “There is currently a rotation away from stocks and indices that have outperformed this year, in favor of laggards,” said David Kruk, head of operations at La Financière de l’Échiquier. “This is healthy for the market and there is nothing negative about the direction it is taking,” he adds in a note.
At the same time, once activity in the US administration resumes, investors are preparing for an avalanche of economic data. The Bureau of Labor Statistics will release a calendar with more lagging data in the coming days, while data from private consultancies anticipate that U.S. inflation is falling.
This data will have an impact on the pools on the next movements of the Federal Reserve (Fed) in terms of interest rates, while futures now give a 65% probability to the scenario of a quarter point rate drop at the December meeting. Of course they will also have an impact on the stock market.
The attention of Spanish investors was focused on the accounts of Banco Sabadell, which lost 5.22% on the stock market. The Catalan entity fell below expectations and collapsed despite posting a record profit between January and September, earning 1,390 million, 7.3% more.
Also noteworthy were the declines of Solaria (-2.94%), Fluidra (-2.21%), Inditex (-1.87%) and Bankinter (-1.87%). In the increases, Indra won the gold medal with an increase of 4.31%, followed by Mapfre and Telefónica, which in both cases recorded increases of 2%.
On the currency market, the euro stands at 1.163 dollars, appreciating by around 0.5%, while on the raw materials market, Brent oil, the point of reference in Europe, stands at around 63 dollars a barrel and is at the lowest levels of the last three weeks. Traders are still weighing the prospects of a record surplus against supply risks from U.S. sanctions.
Stock Markets – Currencies – Debt – Interest Rates – Commodities
