The S&P 500 breaks another historical mark and exceeds 5,000 points

With investors becoming aware that the rate cut is delayed, caution is imposed on the stock markets. The clearest proof was the behavior of the Ibex 35 on Friday, a day in which it moved aimlessly. The Spanish selection team concluded in a draw and the barrier of 9,900 points resists them. The performance was poorer during the week, a period marked by Santander's declines after reports that the entity had provided a bank account used by Iran to bypass international sanctions. Following the trail of recent days, the Ibex 35 was the index with the worst performance in the weekly balance, falling 1.65%.

The apathy of the European stock markets contrasts with the optimism of Wall Street. The S&P 500, the index most followed by managers and analysts, has not stopped setting highs at the start of 2024, and this Friday it exceeds 5,000 points, a level that it touched briefly on Thursday and that it has conquered again, with something more of slack, at the start of the session. Its challenge, however, is to maintain the level of 5,000 at the close, which would make this day historic. In the first minutes of trading, 0.15% is recorded. The fact that the CPI, the reference most followed by the Federal Reserve when it comes to gauging inflationary tensions, confirmed in its final data the initial reading (a year-on-year increase of 3.3%) was received with moderate optimism by investors . Fed Chairman Jerome Powell this week cooled the most optimistic expectations by pointing out that a rate cut in March was unlikely. In this context, the absence of news is a relief for the US central bank.

Within the Spanish market, Acciona Energía cannot shake off the downward pressure and is twice the most bearishly listed. After falling more than 3% on Friday, it extends the losses for the week to 8.7%. Beyond the impact on results of an environment of high rates for longer than expected, the market now also focuses on energy prices. Experts consider that with contained prices it is difficult for clean energy firms to be profitable in the coming years, particularly taking into account the new supply planned and the risks on the cost side. Thus, the punishment of renewables is generalized. With a drop of 5.7%, Solaria slips into the ranking of the most punished firms. Both Solaria and Acciona Energía were downgraded by Goldman Sachs. Along with these, Colonial, one of the firms most punished by high rates, fell 4.6%.

The banks, which with the help of results and improved valuations became the main drivers for the Spanish stock market last week, are acting as ballasts this time. Santander, which added 0.5% on Friday, is the value that subtracted the most points from the selective in the week by losing 4.6%. The Financial Times newspaper published that the entity had provided a bank account used by Iran to bypass international sanctions. However, the rest of the sector is not free from downward pressure, given the fears that regional banking in the US is once again awakening. A year after the fall of Silicon Valley Bank Now all eyes are on New York Community Bank. The entity has tried with little success to quell the doubts arising from the fourth quarter losses and the downgrade of the rating to junk bond by Moody's. German banks have also suffered falls during the week due, in this case, to their exposure to the real estate sector.

The exception to this trend in the Spanish stock market was Unicaja. The ugly duckling of the Spanish banking sector continues to enjoy the good taste its results have left in its mouth. Although the entity earned 4% less in 2023, investors choose to leave the punishment behind and the bank scores 4.8% in the week. Above Unicaja, Acerinox is the best performing value in a week marked by the purchase of Haynes to expand its business in the US.

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