(Reuters) – The New York Stock Exchange opened higher on Monday after losses suffered on Friday due to a series of disappointing results from major American banks, even if tensions in the Middle East keep investors on their guard.
In early trading, the Dow Jones index gained 378.32 points, or 1%, to 38,361.56 points and the broader Standard & Poor’s 500 rose 0.73% to 5,160.66 points.
The Nasdaq Composite gained 0.59%, or 95.19 points, to 16,270.29.
The three main indices of the New York Stock Exchange are in the green after falling by more than 1% on Friday under the effect of mixed results from JP Morgan and Wells Fargo, and after a week also marked by inflation stronger than expected which has raised fears of high interest rates for longer.
Faced with the data, investors have sharply readjusted their expectations about the extent of the Fed’s rate cut this year: they anticipate only 39 basis points of reduction this year, compared to around 150 at the start of the year. , according to LSEG data.
The week that begins is also marked by geopolitical tensions following Iran’s unprecedented attack on Israel on Saturday.
President Joe Biden warned Israeli Prime Minister Benjamin Netanyahu that the United States would not participate in a counteroffensive against Iran, calling for restraint in the face of an escalation of tensions that could drive up energy prices and undermine central banks’ fight against inflation.
“Iran’s involvement has increased the geopolitical risk premium and we expect markets to be somewhat cautious over the coming days,” Mohit Kumar, an economist at Jefferies, wrote in a note.
Defense stocks such as Lockheed Martin, General Dynamics and RTX Corp rose 0.9% to 1.5%.
On the macroeconomic front, retail sales rose more than expected month-on-month in March in the United States, compared to an expected increase of 0.3%, further evidence that the American economy ended the first quarter on a strong footing. solid.
Turning to the bottom line, Goldman Sachs advanced 5.6% after its first-quarter profit beat estimates as a recovery in debt underwriting and trading activity supported its investment banking arm.
Tesla, which will cut more than 10% of its global workforce according to an internal memo consulted by Reuters, lost 1.8%.
Apple, whose smartphone deliveries fell by around 10% in the first quarter of 2024 according to data from the IDC firm, fell by 1.2%.
(Written by Diana Mandiá, edited by Blandine Hénault)
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