PARIS (Reuters) – The New York Stock Exchange opened higher on Wednesday with the decline in bond yields while officials of the American Federal Reserve (Fed) are due to speak during the day and could confirm the hypothesis of a decline rates in June.
In early trading, the Dow Jones index gained 288.04 points, or 0.73%, to 39,570.37 points and the broader Standard & Poor’s 500 rose 0.58% to 5,234.06 points.
The Nasdaq Composite takes 0.45%, or 73.41 points, to 16,389.11.
The three American indices, which ended in the red on Tuesday, rebounded on Wednesday, still driven by the enthusiasm for artificial intelligence (AI) and the prospect of a reduction in Fed rates from June which should allow you to record a quarterly gain.
“The focus on AI continues to drive interest in the technology, and particularly in semiconductors and companies making AI a reality,” said Robert Pavlik, portfolio manager at Dakota Wealth Management.
Among Fed officials scheduled to speak on Wednesday, investors will watch for comments from Christopher Waller at the Economic Club of New York.
“Waller is generally considered a hawk, so it will be interesting to see how he reacts to the latest data releases,” notes Francesco Pesole, strategist at ING.
The market is notably awaiting the monthly PCE price indicator in the United States which will be published on Friday while the stock market week will be shortened to Thursday due to the Easter weekend.
“As for the Fed’s reaction to prices, we do not believe that the outlook for the June meeting will be significantly changed, barring a surprise rise in the PCE on Friday,” adds Francesco Pesole.
The Reuters consensus forecasts a slight acceleration of the PCE index in February to 0.4% month-on-month and to 2.5% year-on-year.
Traders currently expect a 70% probability of a first drop in the cost of credit in the United States in June, according to the CME Group’s Fedwatch barometer.
On the bond market, the yield on ten-year Treasuries fell to 4.2258% and that of two years to 4.5827%.
In terms of values, a large market capitalization like Tesla advances by 0.78%. Chip maker Marvell Technology (+4.38%) is also in demand.
Merck & Co climbed 5.09% thanks to the approval in the United States of its Winrevair treatment for adults suffering from pulmonary arterial hypertension.
The cruise line Carnival dropped 3.05% despite raising its annual profit forecast.
Robinhood Markets jumped 4.22% as the online trading platform announced the launch of a new credit card likely to increase its subscriptions.
Gamestop, on the other hand, plunged by 15.67% after the publication of a falling quarterly turnover and the announcement of the elimination of positions in order to reduce its costs.
(Writing by Claude Chendjou, edited by Kate Entringer)
Copyright © 2024 Thomson Reuters