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(CercleFinance.com) – Wall Street is moving on a positive note on Monday, thanks in particular to an indicator deemed reassuring, the American stock market thus continuing its momentum from last week.
At the end of the morning, the Dow Jones index of the 30 main industrial values gained 0.5% to 40,864.6 points, while the Nasdaq Composite advanced 0.4% to 17,702.4 points.
Published shortly after the opening, the index of leading indicators fell more than expected in July, according to figures from the Conference Board, which support the scenario of a slowdown in growth in the United States.
This barometer of the future evolution of economic activity compiled by this organization close to employers fell by 0.6% to 100.4 last month, while economists were predicting an average decline of 0.2%.
According to ConfBoard, the decline in July was due to weak new orders, negative consumer expectations and a decline in building permits, all of which it said could weigh on future growth.
This worse-than-expected indicator reinforces the prospect of a rate cut next month, a few days before the start of the central bankers’ symposium in Jackson Hole (Wyoming).
Fed Chairman Jerome Powell will speak on Friday.
The participants, who are mostly counting on a rate cut of 25 basis points in September, will try to detect signals on the occasion regarding the direction of monetary policy.
On the stock market, AMD gained 3% after signing a definitive agreement to acquire server maker ZT Systems for $4.9 billion to bolster its AI capabilities.
Estée Lauder rose 0.9% despite disappointing prospects, as the cosmetics group announced the imminent departure of its CEO Fabrizio Freda.
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