The floor of the New York Stock Exchange (GETTY IMAGES NORTH AMERICA/AFP/SPENCER PLATT)
The New York Stock Exchange opened higher on Monday and maintained last weekend’s guidance, on a less pessimistic market ahead of a major inflation gauge on Tuesday and the US central bank’s (Fed) decision on Wednesday. .
Around 2:55 p.m. GMT, the Dow Jones gained 0.09%, the Nasdaq index gained 0.57% and the broader S&P 500 index appreciated by 0.22%.
In recent days, a wind of cautious optimism has been blowing on the New York market, which has allowed the S&P 500 and the Nasdaq to reach peaks of several months.
“We have experienced a turning point”, explains Jack Ablin, of Cresset Capital, who attributes this pivot to recent indicators which showed that the American economy and inflation were decelerating, without activity stalling.
“The fear was that inflation was going to stay high and the Fed was going to keep raising rates, undermining corporate profitability and growth,” the analyst said. “But now, investors see the light at the end of the tunnel”, namely the imminent end of the monetary tightening cycle and the ebb of inflation.
The trend should be confirmed by the CPI price index, due on Tuesday, which will give inflation news in May.
As for the Fed, several of its members have already made it clear that a pause is to be expected this week.
For Patrick O’Hare of Briefing.com, the good behavior of stocks other than technology in general, and of small and mid caps in particular, “gives hope that the progression” of the indices “will include more companies”.
For the first time in months, bonds and equities are going in opposite directions, with the former rising and the latter falling, a historically proven relationship that has broken down in recent years.
The yield on 10-year US government bonds stood at 3.78%, against 3.73% on Friday at the close. Bond rates move systematically in the opposite direction to their prices.
On the stock market, cruise lines took off, supported by an increase in the recommendation of analysts from Bank of America and JPMorgan, encouraged by the high level of reservations and fares.
Norwegian (+7.95%), Carnival (+12.80%) and Royal Caribbean (+2.99%), the three giants of the sector, thus pranced in the first exchanges.
Artificial intelligence continued to turn all the leading stocks in the sector into gold, in particular the semiconductor manufacturers AMD (+2.03%) or Intel (+5.11%), as well as the specialist in the analysis of Palantir data (+3.53%).
General Motors continued to rise (+1.79%), helped by the announcement of the upcoming access of GM electric vehicles to part of its competitor Tesla’s network of super-chargers.
The American laboratory Chinook soared (+ 56.25%) after the announcement of its takeover by the Swiss Novartis (-0.60%) which, on this occasion, put its hands on nephropathy treatments (kidney disease) developed by the group from Seattle (State of Washington).
The Nasdaq stock market group fell sharply (-11.14%) after the announcement of the acquisition of the software publisher for financial services Adenza for 10.5 billion dollars.
Still weighed down by the unfavorable climate for cryptocurrencies in the United States, the digital currency trading platform Coinbase fell by 5.51%.
© 2023 AFP
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