PARIS (Reuters) – The New York Stock Exchange opened higher on Monday with the rebound of Nvidia as well as the easing of fears in the Middle East.
In early trading, the Dow Jones index gained 94.33 points, or 0.25%, to 38,080.73 points and the broader Standard & Poor’s 500 rose 0.38% to 4,986.27 points.
The Nasdaq Composite gained 0.62%, or 95.49 points, to 15,377.50.
Nvidia, which lost 10% on Friday due to questions about the evolution of key rates and profit-taking in artificial intelligence, rebounded by 1.69% on Monday. The semiconductor manufacturer leads Meta Platforms, Amazon and Alphabet in its wake, which rise from 1.23% to 2.06%.
Some of the American stock market giants will be in the spotlight this week, notably with the publications of quarterly results from Tesla and Meta Platforms, while Netflix’s forecasts disappointed last week.
“The market was oversold on Friday due to Netflix’s results, it was mainly a decline linked to technology,” underlines Jay Hatfield, managing director of portfolio manager InfraCap.
“We’re heading towards mega-cap results and so investors are starting to realize that Netflix isn’t very indicative of what’s going to happen with other mega-cap stocks,” he added.
The return to risky assets is also supported by signs of easing tensions in the Middle East, with the Iranian Foreign Minister having downplayed the scope of the explosions reported in his country, specifying in particular that there is for the moment no proven link with Israel.
Sovereign yields in the United States are, however, tightening slightly, with the ten-year taking 3.1 basis points, to 4.6435%, while the week will be marked by the publication of American gross domestic product (GDP) figures for the first time. quarter, the PCE inflation index and consumer spending data.
Money markets are now pricing in around 38 basis points of rate cuts this year in the United States, compared to a reduction of around 150 basis points anticipated at the start of the year, according to LSEG data.
In corporate news, Tesla plunges 4.86% after reducing the price of certain vehicle models in China by almost 2,000 dollars (around 1,870 euros), which raises fears of a price war. Other manufacturers of electric vehicles are also in the red, like Li Auto (-7.65%), Nio (-4.43%) and Xpeng (-4.83%).
Salesforce advances by 2.54% after the breakdown of discussions with a view to acquiring the data management software group Informatica (-10.11%).
Verizon Communications gained 1.27% after reporting a less significant loss of subscribers than expected in mobile telephony in the first quarter thanks in particular to its bundled offers.
(Writing by Claude Chendjou, edited by Kate Entringer)
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