PARIS (Reuters) – The New York Stock Exchange opened lower on Monday at the start of a week which will be shortened on the financial markets and where inflation will be the center of attention following the monetary policy decisions of the last week which sparked a new rally.
In early trading, the Dow Jones index lost 72.53 points, or 0.18%, to 39,403.37 points and the broader Standard & Poor’s 500 fell 0.22% to 5,222.15 points.
The Nasdaq Composite lost 0.42%, or 69.34 points, to 16,359.478.
With the indices close to their record levels following the confirmation last Wednesday by the American Federal Reserve (Fed) of three rate cuts planned for this year, investors seem to be opting for profit-taking.
The S&P and Dow Jones also recorded their largest weekly percentage gains on Friday so far this year.
Traders now estimate a 75% probability of a first Fed rate cut in June, according to the CME FedWatch barometer, compared to a probability of around 55% at the start of last week.
This hope will be tested by the publication this week in the United States of the PCE price index, the Fed’s preferred measure of inflation, as well as the fourth quarter gross domestic product (GDP) figures. while American markets will be closed on Friday for the Easter weekend.
“Stocks could consolidate before Easter,” predicts Raffi Boyadjian, investment analyst at XM.
In terms of values, Boeing advances by 2.39% after the aircraft manufacturer announced the departure at the end of the year of its current general manager Dave Calhoun.
United Airlines fell 4.02%, the airline being placed under increased surveillance by the FAA, the American federal aviation authority, after a series of security incidents.
Intel and Advanced Micro Devices (AMD) fell 3.84% and 2.61% respectively, as China plans to gradually ban the use of chips from American manufacturers from government computers and servers, according to the Financial Times.
(Writing by Claude Chendjou, edited by Kate Entringer)
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