PARIS, June 24 (Reuters) – The New York Stock Exchange rose in early trading on Friday, buoyed by lower interest rate expectations amid growing signs of deterioration in global economic conditions and to that of commodity prices.
A few minutes after the start of trading, the Dow Jones index gained 282.94 points, or 0.92%, to 30,960.3, the Standard & Poor’s 500 rose 1.14% to 3,839.09 and the Nasdaq Composite took 1.52% to 11,402.96.
At the same time, on the base metals market, the price of copper fell by 1.68% and that of tin fell by 8.83%; the former is heading for its biggest one-week decline in a year and the latter for a record weekly decline.
This marked decline and the economic indicators of the last few days suggesting a marked slowdown in growth in the United States and in Europe are reflected in lower market expectations of the maximum level that key interest rates will reach.
According to CME’s FedWatch barometer, the peak in US rates is now expected around 3.4% next March, compared to just over 4% for June 2023 a few days ago.
This development allows Wall Street to hope to record a positive performance over the whole week for the first time in a month since the S&P 500 is currently showing a rebound of more than 4% since Monday, after three consecutive weeks. drop which made it fall by 11.6% in total.
The general relief benefits, among other things, large caps in the high-tech sector, which are still sensitive to rate expectations: Apple gains 1.85%, Tesla 2.43% and Microsoft 2.41%.
In the news of the results FedEx wins 6.96% after an annual profit forecast above expectations.
The most spectacular rise at the start of the session was for the software publisher Zendesk, whose price soared 29.13% after press reports suggesting an imminent takeover by investment funds.
(Writing by Marc Angrand, editing by Kate Entringer)