A New York Stock Exchange operator (AFP/ANGELA WEISS)
The New York Stock Exchange scored a new triple on Thursday, the three indices piling up new records after those of the day before, propelled by a tone considered more optimistic from the Fed on the evolution of inflation.
The Dow Jones index gained 0.68% to 39,781.37 points, the Nasdaq advanced 0.20% to 16,401.84 points and the S&P 500 by 0.32% to 5,241.53 points.
On Wednesday after a monetary meeting, Jerome Powell, the president of the American central bank, was relatively confident about the trajectory of inflation. And its Monetary Committee maintained its forecast of three rate cuts of a quarter of a percentage point.
Wall Street soared in response and that momentum largely continued Thursday.
“The Dow Jones is not far from passing the 40,000 points mark,” underlined Sam Stovall of CFRA.
“The S&P 500 had no trouble passing 5,000 points (in February), so I doubt that the Dow will have trouble breaking its own ceiling,” said the analyst.
The Fed left its high rates unchanged, as markets expected, but investors feared, given the stubborn inflation of the last two months, that the Federal Reserve would reduce its plans for rate cuts to only two.
“Chairman Powell clarified some uncertainties and implicitly indicated that the Fed could begin lowering rates in June,” added the CFRA specialist.
In the bond market, yields were stable for ten-year Treasury bills, at 4.27%.
Elsewhere among central banks, the Swiss National Bank (SNB) opened the door to rate cuts by becoming the first monetary institution to change its policy.
The SNB justified the reduction of a quarter of a point in its reference interest rate, to bring it to 1.5%, by its “effective” fight against inflation.
On the stock side, great excitement reigned on Wall Street with the success of the IPO of the social network Reddit.
At the opening, the basket was decorated in the colors of the forums and its mascot, an alien figurine named Snoo, rang the opening bell.
It was the first listing on the New York Stock Exchange of a social network since Pinterest five years ago and — at least after the first session — it was a success for the IPO market. , which has been idling since a burst in September 2023.
Reddit action, or RDDT, introduced at $34, soared 47.97% to $50.31.
The listing will bring $748 billion in new money to the company. As for the company’s valuation on the stock market, it will exceed $6.5 billion even though the social network only has a turnover of $804 million and still suffered a loss of $90.8 million per year. last year.
Microprocessor and memory maker Micron Technology soared 14.13% to $109.85 after a surprise second-quarter profit and strong third-quarter sales forecasts.
Apple shares were neglected (-4.09% to $171.37) while the American government announced that it was taking the Apple group to court for anti-competitive practices linked to the iPhone and the constraints set by the Californian group to application developers.
The discount chain Five Below collapsed 15.40% to $176.79 after lower-than-expected results, with the brand complaining about the impact of in-store theft, a scourge that affects many distributors.
© 2024 AFP
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