New York (AFP)

The Dow Jones, Wall Street's flagship index, bounced back on Monday after recording its heaviest weekly drop since October in a market worried about the US Central Bank (Fed) 's upward revision of its forecast for inflation.

The Dow Jones rose 1.76% to 33,876.97 points.

It had fallen 3.45% last week.

The broader S&P 500 index gained 1.40% to 4,224.79 points and the technology-heavy Nasdaq gained 0.79% to 14,141.48 points.

For Maris Ogg of Tower Bridge Advisors, "the market is rebalancing after the too big correction last week".

Despite the Fed's upward revision of its inflation projections this year and the possibility of a hike in key rates from 2022, the expert is not particularly worried.

"Inflation is when there is too much money for too little good," notes Ogg.

"From a raw materials point of view, we really cannot speak of a shortage."

The sub-index representing the energy sector within the S&P 500 also jumped more than 4% on Monday.

The one that includes industrial stocks rose 2.18%.

The week on Wall Street will be marked by the publication of the results of the Fed's latest banking stress tests on Thursday and the PCE indicator on US household income and expenditure in May on Friday.

Investors will also be watching Tuesday a parliamentary hearing by Fed Chairman Jerome Powell on his institution's response to the pandemic.

Among the values ​​of the day, the American agricultural technology company Raven Industries soared 49.27% ​​after the announcement of its takeover by the Italian-American group CNH Industrial (+ 1.30%) for 2 , $ 1 billion.

Pershing Square Tontine Holdings ended in breakeven.

Vivendi signed an agreement on Sunday with the company of American financier Bill Ackman, in order to sell him 10% of its subsidiary Universal Music Group (UMG), which it intends to float on the stock market after having distributed 60% of the capital to its shareholders.

Software publisher MicroStrategy, which claimed on Monday to hold more than 100,000 bitcoins, plunged 9.71%, suffering from the fall of the cryptocurrency after the Chinese authorities toughen their tone against the mining and trading of these digital assets .

Cryptocurrency exchange Coinbase also had a tough session, dropping 2.92%.

Lordstown Motors plunged 5.45%.

Several executives of the American start-up which develops an electric pick-up sold part of their shares shortly before the publication of the latest quarterly financial results, according to stock documents released on Monday.

Lordstwon has suffered many setbacks in recent months which question the future of the company.

The air carrier American Airlines, which announced the cancellation of hundreds of flights by mid-July due in particular to staffing problems and bad weather, took 0.72%.

US online retail giant Amazon fell 0.94% on the first day of its Prime Day promotional operation.

On the debt market, the US 10-year borrowing rate stood at 1.50% against 1.45% Friday night.

© 2021 AFP

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