PARIS, Jan.6 (Reuters) – The New York Stock Exchange opened on a hesitant note on Thursday, the prospect of an earlier-than-expected hike in US Federal Reserve (Fed) interest rates the day after the publication of the minutes of its December meeting, leaving investors perplexed.
Ten minutes after the trade, the Dow Jones index gained 2.99 points, or 0.01%, to 36,410.1 points and the Standard & Poor’s 500, larger, rose 0.27% to 4,713.72 points.
The Nasdaq Composite took 0.42%, or 63.65 points, to 15,163.82. All three indices initially opened out of order, with the Dow the only one up.
Fed officials said at their meeting last month that the US job market was “very tight” and that the central bank may not only have to raise interest rates earlier than expected, but also reduce its balance sheet to control high inflation.
Securities sensitive to changes in interest rates such as technologies continue to decline. The sector index drops 0.26%. Digital heavyweights like Microsoft, Amazon, Apple and Tesla Inc lose between 0.4% and 1%.
Netflix drops 0.9% after the lowering of the group’s price target by JP Morgan, the intermediary expecting a medium-term decline in the number of subscribers to the platform.
Conversely, the financial (+ 0.68%) and banking (+ 1.31%) compartment is sought after, in anticipation of at least three rate hikes of a quarter of a point this year. Energy values (+ 1.97%) also rose, like Occidental Petroleum which gained 3.74%, in the wake of the continued rise in oil prices.
Side economic indicator, jobless claims in the United States last week increased more than expected, to 207,000, announced Thursday the Department of Labor.
Investors will also learn at 3:00 p.m. GMT the figures for the activity of the services sector in the United States for the month of December.