by Stephen Culp
NEW YORK (Reuters) – The New York Stock Exchange ended higher on Tuesday, confirming the momentum of recent weeks, with the S&P-500 having reached a session peak in almost two years, as investors anticipate a rate cut of the American Federal Reserve (Fed) in 2024, possibly as early as the first quarter.
The Dow Jones index gained 0.43%, or 159.36 points, to 37,545.33 points.
The broader S&P-500 gained 20.12 points, or 0.42%, to 4,774.75 points.
The Nasdaq Composite advanced 81.60 points (0.54%) to 15,074.57 points.
In this final week of the year, Wall Street’s main indices remained in positive territory in the wake of high-growth stocks, sensitive to interest rates, and semiconductor manufacturers.
While it recorded an eighth consecutive week of increase on Friday – an unprecedented series for years – Wall Street is heading towards gains over the month, the fourth quarter and the whole year, in a context of slowdown inflation, which is approaching the Fed’s 2% target.
The S&P-500 is heading towards its strongest quarterly increase in three years, as it moved closer to its closing record set in January 2022.
The progression of the main Wall Street indexes has accelerated since the last Fed policy meeting two weeks ago, after which the American central bank indicated that its monetary tightening campaign was nearing an end. and signaled a rate cut in 2024.
According to FedWatch, markets are banking on a 25 basis point rate cut starting next March.
“We had good data on inflation on Friday. If inflation continues to fall in January and February, there is a good chance that the Fed” will lower its rates earlier than expected, commented Peter Cardillo, economist Managing Director at Spartan Capital Securities in New York.
All major sectors of the S&P-500 ended the session in the green, led by energy which surged in the wake of rising oil prices.
On the value side, note, Manchester United increased by 3.4% after businessman Jim Ratcliffe completed a long-awaited agreement to acquire a stake in the English first division football club. Intel ended up 5.2% after the Israeli government approved a $3.2 billion subsidy for a $25 billion factory the semiconductor maker plans to build in southern Israel. ‘Israel.
(French version Jean Terzian)
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