PARIS (Reuters) – The New York Stock Exchange opened lower on Friday following the closing records of the S&P 500 and the Nasdaq, investors opting for profit taking while the American Federal Reserve (Fed) revised downwards its rate cut projections this year.
In early trading, the Dow Jones index lost 172.18 points, or 0.45%, to 38,474.92 points and the broader Standard & Poor’s 500 fell 0.36% to 5,413.65 points.
The Nasdaq Composite lost 0.35%, or 61.50 points, to 17,606.05.
The S&P 500 and the Nasdaq reached closing records on Thursday for a fourth consecutive session, against the backdrop of a rally in technology stocks, whose sector index also finished at an unprecedented level for the fourth time in a row.
The appetite for technology stocks was fueled by Broadcom’s forecasts on artificial intelligence (AI) and the rise of Apple, which once again became the world’s largest market capitalization, with investors appearing to ignore the Fed’s announcements which brought Wednesday his forecast of three rate cuts this year to just one.
The CME group’s Fedwatch barometer shows that traders still expect two cuts in borrowing costs by the end of the year.
In the bond market, the yield on ten-year US Treasury bonds fell by around two basis points, to 4.2286%, but the rise of the dollar (+0.52%) to a one-month high against a basket of international currencies suggests that interest rates in the United States will remain high for a long time.
In this regard, the market will be attentive to the comments of the President of the Chicago Fed, Austan Goolsbee, and the Governor of the Fed, Lisa Cook, who are due to speak during the day, as well as to the investigation Consumer Sentiment Monthly from the University of Michigan.
In business news, Adobe climbs 14.94% thanks to the increase in its annual turnover forecast against a backdrop of strong demand for its publishing tools based on artificial intelligence (AI).
Sirius
(Written by Claude Chendjou, edited by Bertrand Boucey)
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