PARIS (Reuters) – The New York Stock Exchange opened higher on Thursday, a new indicator having confirmed the ebbing of tensions in the labor market on the eve of the publication of the official monthly report on employment in the United States.
In early trading, the Dow Jones index gained 55.26 points, or 0.15%, to 36,109.69 points, and the broader Standard & Poor’s 500 rose 0.50% to 4,572.38 points.
The increase on the Nasdaq Composite is clearer, thanks in particular to Alphabet. The flagship new technologies index gained 0.83%, or 117.80 points, to 14,264.52.
An hour before the opening of Wall Street, the statistic of weekly unemployment claims in the United States, even if it is considered volatile and subject to revisions, showed an increase of 220,000 the previous week, a sign of a relaxation on the work market.
The ADP survey on job creations in the private sector and the “Jolts” report (Job Openings and Labor Turnover Survey) on job offers, two indicators published at the beginning of the week, had already suggested a reduction in tensions on labor. Investors are now awaiting confirmation of this trend with the November report on job creation, the unemployment rate, and wages which will be published Friday by the Labor Department.
This data could influence the decisions of the American Federal Reserve (Fed) which meets on December 12 and 13 as the American central bank seeks to curb demand to curb inflation.
A status quo on Fed rates is expected next week and traders are counting with a 61% probability on a first drop in the cost of credit as early as March, according to the CME group’s Fedwatch barometer.
However, some analysts believe that the markets are showing excessive optimism about the evolution of the rate trajectory.
The 10-year U.S. Treasury yield edged up about three basis points to 4.1476, but remained near a three-month low.
In terms of values, Alphabet jumped 5.16% the day after the presentation of Gemini, its most advanced artificial intelligence (AI) model.
AMD gained 3.65%, with the group estimating the market for its processors intended for artificial intelligence (AI) in data centers at $45 billion this year. Its competitor Nvidia advances by 0.91%.
In the health sector, Cerevel Therapeutics soared 11.41% after Wednesday’s announcement of its takeover by AbbVie for $8.7 billion, while Bristol-Myers Squibb rose 0.69% to the favor of a new share buyback plan for an amount of three billion dollars.
On the downside, Gamestop plunged 5.15%, the video game distributor having published a quarterly turnover lower than expectations against a backdrop of slowdown in consumer spending in a context of economic uncertainties.
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(Written by Claude Chendjou, edited by Tangi Salaün)
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