(CercleFinance.com) – The New York Stock Exchange should regain some strength on Monday morning, the desire to rebound after the decline of the past week seeming to more than offset the warning issued by Apple.
Half an hour before the opening, the futures contracts on the major New York indices are all advancing around 0.2%, signaling a slightly higher opening.
The warning issued last night by Apple on its production capacities for the iPhone 14, justified by the drastic containment measures affecting China, does not bode well for the end of the year on Wall Street.
The Apple brand predicted that these difficulties would weigh on its deliveries and extend shipping times to customers despite the still strong demand for the device.
The statements of Apple, which remains the first market capitalization of Wall Street, did not seem to affect the general feeling of the investors too much, since the title lost approximately 1% in the premarket transactions.
US markets should benefit from a technical recovery after falling sharply last week, with the Nasdaq Composite posting its worst weekly decline since January (-5.7%).
Investors could, however, be reluctant to take too strong a position before knowing the results of the midterm elections, which will be held this week.
Recent polls suggest that Democrats, undermined by soaring inflation in the country, could lose their majority in the House of Representatives.
Investors know that a divided executive would reduce the chances of a significant fiscal boost should the US economy take a hit.
The loss of only one, or even both chambers of Congress, would also be enough to revive the quarrels between the two parties concerning the raising of the debt ceiling.
All in all, the midterm elections seem unlikely to have a significant impact on US equity markets.
“Investors obviously tend to prefer a balance of power in government, so a divided Congress might be slightly more positive,” said Kristina Hooper, strategist at Invesco.