The Dow Jones index advanced 1.07% to 31,386.74 points, the tech-heavy Nasdaq jumped 2.25% to 11,199.12 points and the S&P 500 gained 1.63% to 3,859. .11 points, according to final results.

The session was also fueled by multiple company results.

But what struck investors, according to Gregori Volokhine, portfolio manager, is the sharp slowdown in the real estate bubble in the United States.

This cooling "caused a drop in bond yields large enough to explain the rebound" in equities, the analyst told AFP.

According to the widely followed Case-Shiller index, the growth of the real estate market slowed down over one year in August to 13% against almost +16% in July.

"This means a very rapid drop, of 3%. I am not saying that the real estate crisis" of the years 2008-2011 "will be renewed but there will be damage anyway", underlined Mr. Volokhine again.

"The market is going up but we would rather see it going up for good reasons rather than because of the deterioration of what is most important in the personal economy of Americans, their property, because more than 60% of between them are owners,” he explained.

The drop in the real estate market (-0.9% over the month, the biggest drop since 2010) is the result of the Fed's rate-tightening monetary policy.

"It shows that Fed policy is starting to work," noted Art Hogan of B. Riley Wealth Management.

The market reacted to the news on Tuesday by pushing down bond yields which fell to 4.08% against 4.24% the day before for ten-year rates and 4.22% against 4.37% for those at thirty. year.

Enthusiasm for equities was also buoyed by a flurry of rather good results during the session.

General Motors (+3.70%) thus maintained its forecast for the whole year despite a “difficult” environment, insofar as demand for its vehicles remains “solid”.

Coca Cola (+2.47%) also benefited from sustained demand for its drinks and revised its forecast for the full year upwards after beating expectations in the third quarter despite the rise in the dollar.

By contrast, US conglomerate General Electric (aviation, healthcare and energy) fell 0.49% after posting a loss in the third quarter and lowering its full-year profit forecast, hurt by supply chain disruptions and of inflation.

Google disappoints

The table was especially spoiled with the results of Alphabet (Google), announced after the close, which made the title plunge by almost 6% in electronic trading after the end of the session when it had finished up 1.90% to $104.93.

Google's parent company posted third-quarter revenue of $69.1 billion, up 6% year-on-year, the weakest revenue growth since 2013, except for the start of the pandemic.

These sales are also below analysts' forecasts, which had forecast 70.7 billion.

The net profit of the Californian giant stood at 14 billion dollars, a result well below expectations, while its advertising revenues have decreased.

The title of Microsoft was also sanctioned after the close (-2.30%) despite sales and a quarterly result slightly above expectations.

The title had closed up 1.38% to 250.66 dollars.

The software group, on the other hand, showed a slowdown in its growth in the cloud sector (Azure subsidiary) compared to the same time last year.

Among the indicators, US consumer confidence in October sank more than expected to 102.5 points from 107.8 points, according to the Conference Board.

The dollar fell sharply in the wake of falling bond yields.

The Dollar Index dropped 1% to 110.8 points around 8:30 p.m. and 0.96% against the euro.

© 2022 AFP