(Reuters) – The New York Stock Exchange opened higher on Monday, driven at the start of the week by artificial intelligence (AI) and technology stocks, ahead of the highly anticipated next meeting of the US Federal Reserve on Wednesday ( Fed).
In early trading, the Dow Jones index gained 137.01 points, or 0.35%, to 38,851.78 points and the broader Standard & Poor’s 500 rose 0.83% to 5,159.33 points.
The Nasdaq Composite gained 1.22%, or 194.50 points, to 16,167.68 points.
While markets are counting on the Fed maintaining borrowing costs at the end of its next meeting on Wednesday, investors will remain attentive to any indication of the trajectory of rates in the months to come.
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Higher-than-expected US inflation data released last week prompted caution, with markets pricing in a 59% chance of a rate cut in June, up from 71% a week ago, according to the CME FedWatch tool.
A “hawkish” turn by the Fed during its general policy meeting could increase the pressure on the indices, driven since the start of the month by the craze for AI stocks.
This enthusiasm continues to animate the markets on Monday, with investors closely following Nvidia’s GTC developer conference, which is scheduled to continue until the end of the week.
“While the recent pullback in tech stocks may raise concerns that the market has gone too far and portfolios are too concentrated, we believe investors can find compelling diversification opportunities in the next AI leaders,” said Mark Haefele, analyst at UBS.
Nvidia shares rose 3.85%, leading Micron Technology (+2.34%).
Alphabet gained 7.2% after information from Bloomberg according to which Apple (+2.1%) is in talks to integrate Google’s Gemini AI engine into the iPhone.
Tesla gains 2.3% after announcing its intention to increase the price of its Model Y electric vehicles in certain European countries on March 22.
(Written by Augustin Turpin, edited by Blandine Hénault)
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