(Reuters) – The New York Stock Exchange opened higher on Thursday as weaker-than-expected producer price data eased investors’ inflation fears and boosted hopes the Reserve Bank would cut interest rates federal.
In early trading, the Dow Jones index gained 53.98 points, or 0.14%, to 38,515.49 points and the broader Standard & Poor’s 500 rose 0.23% to 5,172.49 points.
The Nasdaq Composite takes 0.41%, or 65.64 points, to 16,236.00.
Statistics released Thursday by the Labor Department showed that U.S. producer prices (PPI) rose at a slower pace than expected year-over-year in March, while those from the Labor Department showed a decline. higher than expected unemployment claims.
Read also…
“Producer prices were a bit higher than expected and that was a real surprise, given rising commodity prices and a lot of input prices,” said analyst Paul Nolte at Murphy & Sylvest.
“Some of this rise will be reflected in the consumer price index in a few weeks, so the consumer price index could be a little higher than expected,” he added.
A separate report showed that the number of Americans filing new claims for unemployment benefits rose to 211,000 for the week ending April 6, compared with estimates of 215,000.
US stocks fell sharply in the previous session, weighed down by the latest US inflation data for March, prompting a review of bets on the timing and pace of rate cuts. the Fed.
Several brokerages have changed their outlook for rate cuts, with UBS Global Wealth Management now expecting the Fed to begin cutting interest rates in September, up from June, while BNP Paribas anticipates the first cut as early as July.
Attention is now focused on the opening of the results season on Friday in the United States, which should liven up trading at the end of the week.
In terms of values, Vertex Pharmaceuticals gained 1% after announcing Wednesday evening the acquisition of Alpine Immune Sciences, which increased by 36%, for approximately 4.9 billion dollars in cash, representing a premium of approximately 67% compared to the share price. Tuesday’s closing of its target.
Rent The Runway soars 47%, with the clothing rental specialist expecting annual revenue growth of 1% to 6% and free cash flow to break even for the full year .
*For values to track, click
(Written by Augustin Turpin)
©2024 Thomson Reuters, all rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. “Reuters” and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.