Wall Street: Wall Street opens without direction, oil companies go up

(Reuters) – The New York Stock Exchange opened directionless on Monday after Friday’s sharp rebound as investors weighed the possibility of a pause in the Federal Reserve’s rate hike at its meeting next week.

In early trading, the Dow Jones index gained 5.02 points, or 0.01%, to 33,767.78 points and the broader Standard & Poor’s 500 rose 0.10% to 4,286.50 points.

The Nasdaq Composite is unchanged at 13,240.58 points.

Congress’s passage of the US debt deal on Friday fueled risk appetite, while slowing US wage inflation bolstered hopes that the Fed would refrain from raising its rates at its meeting next week.

The S&P 500 index closed Friday at a nine-month high and the Nasdaq hit a new high in a year, supported by gains in technology stocks.

According to the CME Group’s Fedwatch Barometer, traders estimate a 76% chance that the US central bank will keep interest rates unchanged after its June 13-14 meeting, although they are not ruling out a further increase in July.

Investors will be watching the release of the ISM Services Index for May at 1400 GMT, as well as comments from Cleveland Fed Chair Loretta Mester, who is expected to speak at a later event. late in the day.

In values, the oil companies Chevron and Exxon Mobil are advancing by around 1% with the rise in crude prices, which benefit from the announcement by Saudi Arabia of a reduction in production of one million barrels per day in July.

JP Morgan lost 0.8% and Citigroup 0.3% while the big banks in the United States could soon see a tightening of capital rules, according to the Wall Street Journal.

Apple, which begins its global developer conference on Monday during which it should present a new mixed reality headset, is moving to an all-time high.

(Written by Diana Mandiá, edited by Blandine Hénault)

Copyright © 2023 Thomson Reuters

Source link -84