PARIS (Reuters) – Stock markets opened on a cautious note on Friday on Wall Street where investors are still digesting the latest inflation figures which suggest an imminent rate cut by the Federal Reserve.
In early trading, the Dow Jones index gained 36.29 points, or 0.09% to 39,905.67 points and the broader Standard & Poor’s 500 rose 0.12% to 5,303.58 points.
The Nasdaq Composite takes 0.12% or 19.75 points, to 16,718.072.
The indices are consolidating after soaring on Wednesday and Thursday, supported by the latest CPI inflation figures. The Dow Jones thus exceeded 40,000 points on Thursday, while the Nasdaq recorded a record during the session, also driven by encouraging comments from monetary policy officials.
“The comments made this week by Fed officials remain, in our view, indicative of a central bank ready to change course and ease relatively quickly if convincing evidence supports this decision,” explain the strategists at MUFG, who believe a rate cut in July is possible.
Investors are now positioning themselves for the next data releases, with activity indicators notably expected next week, while retail sales published on Wednesday were weaker than expected.
The real test, however, will be PCE inflation, the Fed’s favorite indicator of price dynamics expected on May 31.
In terms of values, Applied Materials rose 1.26% after its annual results.
AMD gained 3.4% after Microsoft announced plans to offer access to artificial intelligence chips manufactured by the designer to its customers.
(Written by Corentin Chappron, edited by Nicolas Delame)
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