PARIS (Reuters) – The New York Stock Exchange opened in mixed order on Monday, the continued rise in bond yields in a context of lowering expectations of the pace of rate reduction by the American Federal Reserve (Fed) partially weighing on the indices.
About fifteen minutes after the first exchanges, the Dow Jones index gained 47.33 points, or 0.12%, to 38,951.37 points and the Standard & Poor’s 500, broader, fell by 0.04% to 5,202, 19 points.
The Nasdaq Composite lost 0.06%, or 9.31 points, to 16,239.203.
On the bond market, the yield on ten-year Treasuries jumped almost six basis points, to 4.4218%, the highest since November, while the two-year yield stood at 4.7655%, up by ‘about four points.
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This rise is linked to the publication on Friday of the US employment report which showed an economy still vigorous to the point that traders are now only counting on a 62 basis point cut in Fed rates this year, compared to a reduction by 150 points at the beginning of January.
The session was marked by a certain wait-and-see attitude and cheap purchases of major technology and growth stocks.
Several Fed officials, including Austan Goolsbee and Neel Kashkari, are due to speak during the day, while the minutes of the central bank’s latest monetary policy meeting will be published in the evening.
These elements will make it possible to know more about the trajectory of rates and the evolution of the economy while on Wednesday the monthly figures for consumer prices in the United States will be published, while the major American banks will open at the end of the week the ball of quarterly results.
In values, a mega-capitalization like Amazon, Nvidia takes 0.38% and Alphabet 0.70%.
Taiwan Semiconductor Manufacturing (Tsmc) advances 1.38% after the US Department of Commerce announced a $6.6 billion subsidy for the production of advanced semiconductors in Phoenix, Arizona.
Tesla gained 3.64% after the group’s announcement of a presentation on August 8 of a “robotaxi”.
Spirit Airlines jumped 5.07% after announcing a plan to lay off around 260 pilots in a context of cost reduction.
(Writing by Claude Chendjou, edited by Kate Entringer)
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