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(CercleFinance.com) – Wall Street is expected to take a break on Friday, after setting a string of records in recent days thanks to renewed optimism about rate trends and the economic situation in the United States.
Half an hour before the opening, futures contracts on the main New York indices fell by around 0.1%, suggesting a pause after the previous day’s rise.
The Federal Reserve met investors’ expectations on Wednesday by opting for a strong move, namely a 50 basis point rate cut, while appearing reassuring about the health of the world’s largest economy.
These decisions have reinforced the postulate of a soft landing of growth accompanied by a gradual reduction in interest rates, the scenario that the markets are currently dreaming of.
As a result, the Dow and the S&P 500 set new records on Thursday and are now showing weekly gains of around 1.5% for the week.
The Nasdaq – which has not returned far from its historic highs – has gained 1.8% since Monday morning, which also puts it in a good position to line up a second consecutive week of progress.
After these ceilings, the momentum of the last few days could however run out of steam a little despite the reassuring signals sent by the Fed.
Questions surrounding the timing and extent of upcoming rate cuts could in particular prompt investors to be cautious and take some profits.
The session could prove particularly irregular in the absence of leading economic indicators on this so-called “four witching” day, when options and futures contracts on stocks and indices expire.
On the oil front, crude prices are heading, like stock markets, towards a second week of gains in a row, driven by the renewed appetite that is supporting risky assets.
A barrel of light Texas crude is currently down 0.4% at $71.7.
On the foreign exchange market, the greenback continues to lose ground, allowing the euro to strengthen further, around the threshold of 1.1175.
The yields on Treasuries, which recovered this week, tended to stabilize on Friday, with those on 10-year notes changing little, remaining at 3.73%.
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