(CercleFinance.com) – The New York Stock Exchange should open higher on Friday morning after results above expectations from Microsoft and Alphabet, while the trend in inflation tends to be reassuring.
Half an hour before the opening, futures contracts on the main New York indices rose from 0.1% to 1%, suggesting a green start to the session.
In line with expectations, the PCE consumer price index slowed in March, which revives the hypothesis of a Fed rate cut in September.
The Commerce Department said the Federal Reserve’s closely watched core PCE inflation index decelerated to 0.3 percent last month sequentially from a 0.5 percent increase. in February.
Over one year, its progression was reduced to 2.8%, compared to 2.9% in February.
Traders now expect a probability of almost 46% that the Fed will cut rates by 25 basis points in September, according to the CME Group’s Fedwatch barometer.
On the bond market, the yield on ten-year Treasuries stands at 4.68%, up about three basis points from its six-month highs reached the day before.
The rating is also supported by the solid results and outlook published by two technology giants, which bode well for the sector and investments in the ‘cloud’.
Microsoft jumped almost 4% in pre-stock market quotations after posting a much better than expected net profit in the first quarter, driven by the ‘cloud’ and a 31% jump in Azure turnover.
The title of Alphabet, the parent company of Google, soared for its 12% share in pre-opening, the market celebrating accounts higher than expectations, but above all the payment of the first dividend in the history of the group and the announcement of a massive share buyback plan.
These solid performances should allow all of the ‘Magnificent Seven’ – including Nvidia and Amazon – to get back in the right direction.
Among other featured stocks, Intel should be punished by 8% at the opening after missing its objectives in the first quarter, in particular due to disappointing activity in servers.
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