June 24 (Reuters) – The New York Stock Exchange closed sharply higher on Friday, buoyed by lower interest rate expectations on growing signs of deterioration in global economic conditions and commodity prices.
The Dow Jones Industrial Average gained 2.68%, or 823.32 points, to 31,500.68 points.
The broader S&P-500 gained 116.3 points, or 3.06%, its largest single-session percentage gain since May 18, 2020, to 3,912.03 points.
The Nasdaq Composite advanced for its part by 375.43 points (3.34%) to 11,607.62 points.
The eleven sector indices of the S&P finished in the green.
The morale of American households deteriorated even more sharply than initially estimated in June, the final results of the monthly survey from the University of Michigan showed on Friday, the latest economic indicator to date suggesting a marked slowdown in growth in the United States. UNITED STATES.
Added to this this week was a marked decline in commodity prices, easing inflationary pressures. The Refinitiv/CoreCommodity index, which measures the prices of energy, agriculture, metals and other commodities fell Thursday to its lowest level in about two months.
As a result, investors have significantly lowered their rate expectations in the United States: according to CME’s FedWatch barometer, the peak in US rates is now expected around 3.4% next March, while was just above 4% for June 2023 a few days ago.
This development allows Wall Street to record a positive performance over the whole week for the first time in a month since the S&P 500 has posted a rebound of more than 6.46% since Monday, after three consecutive weeks of decline which caused it to fall by 11.6% in total. The Dow gains for its part, still over the week, 5.4% and the Nasdaq 7.49%.
The general relief also benefits large caps in the high-tech sector, among others, which are still sensitive to rate expectations: Apple gains 2.45%, Tesla 4.52% and Microsoft 3.4%.
In the news of the results, FedEx wins 7.16% after an annual profit forecast above expectations.
* TO BE CONTINUED :
(written by Marc Angrand, edited by Jean-Stéphane Brosse)