(CercleFinance.com) – The New York Stock Exchange remains on Thursday on the trend that has been in place since the beginning of June, with the setting of new records for the S&P 500 and the Nasdaq.
At the end of the morning, the Dow Jones index advanced 0.3% to 38,940 points. The S&P 500, much broader and the main reference for managers, also increased by 0.2% to 5497.1 points after reaching a new absolute high during the session, above 5505.5 points.
The Nasdaq Composite progressed a little less vigorously with a gain of 0.1% to 17,875.2 points, after a historic peak at 17,936.7 points at the start of the morning.
The S&P and the Nasdaq had already posted records simultaneously during the session and at the close on Tuesday, before the ‘Juneteenth’ holiday.
The prospect of significant investments in generative AI is fueling investors’ appetite for risk and directing them towards technology stocks.
Nvidia, now the world’s largest capitalization, adds nearly 3% growth while some analysts see the chip manufacturer reaching the $4,000 billion valuation mark within a year.
Accenture gained nearly 7% after reporting during the publication of its quarterly results a solid order book linked to its numerous projects in generative AI.
The market reaction is all the more favorable as the indicators published in the morning delivered a health report that was neither too robust nor too weak for the American economy.
Published this morning, unemployment benefit applications fell by 5,000 to 238,000 last week, showing that the job market remains dynamic.
Given the good health of employment, investors are a little more doubtful about a Fed rate cut in September.
Investors now estimate the probability of monetary easing at the start of the school year at 57.9%, compared to 61.7% the day before, according to the CME Group’s FedWatch barometer.
But the ‘Philly Fed’ index – which measures the growth of manufacturing activity in the northeast of the United States – fell by three points to stand at +1.3 June.
The Commerce Department reported a 5.5% drop in housing starts in May while housing permits fell 3.8%.
On the bond market, the yield on ten-year Treasury bills rose above 4.27% after these figures, but still remains at the lowest level for almost three months.
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