Wall Street opens hesitantly after a burst of indicators

PARIS (Reuters) – The New York Stock Exchange opened on Friday on a mixed note after the publication in recent days of numerous economic indicators suggesting a slowdown in the American economy, a scenario which supports expectations of an end to the monetary tightening cycle of the Federal Reserve (Fed).

In the first exchanges, the Dow Jones index does not show a marked direction and is displayed at 34,939.82 points like the broader Standard & Poor’s 500, which remains at 4,508.36 points. The Nasdaq Composite lost 0.10% or 14.71 points, to 14,098.965 points.

The week was rich in the release of economic indicators: inflation on Tuesday was weaker than expected, while figures for retail sales, industrial production and imports all fell, suggesting that the Fed’s rate hikes are finally slowing down American activity.

Another important element, the labor markets are weakening: the “Empire State” index and “Philly Fed”, two leading indicators, show deteriorating employment prospects, while the number of new jobless registrations has increased more provided that.

All of this data supports the scenario of an end to the Fed’s rate hikes and a greater easing of monetary policy than announced by the central bank in 2024, in order to support slowing activity.

At values, Applied Materials fell 6.5%, the semiconductor equipment maker under investigation for deliveries to Chinese chipmaker SMIC via South Korea in alleged violation of US rules to export.

(Written by Corentin Chappron, edited by Blandine Hénault)