PARIS (Reuters) – The New York Stock Exchange was practically stable at the start of the session on Friday, the day after the spectacular rebound which greeted the announcement of a slowdown in inflation likely to curb the rise in interest rates, a reason for hope, to which is added the easing of health restrictions in China.
A few minutes after the start of trading, the Dow Jones index posted a symbolic gain of 2.98 points to 33,718.35 and the Standard & Poor’s 500 was practically unchanged at 3,955.77 while the Nasdaq Composite lost 0.31% to 11,080.15.
The Nasdaq jumped 7.4% on Thursday and the S&P-500 5.5%, recording their best performance in more than two and a half years after US inflation returned below 8%, the lowest since January.
Investors are now favoring the hypothesis of a rate hike by the Federal Reserve limited to half a point in December when they expected a hike of three quarters of a point before the consumer price figures.
This hope that the Fed will relax its strategy a little is combined with the easing of anti-COVID measures in China, with among other things the reduction in the duration of quarantine.
The news logically benefits Chinese groups listed on Wall Street such as Alibaba, which gained 1.24%, but also values in the casino sector such as Wynn Resorts (+ 5.65%) or Las Vegas Sands (+ 4.36%) .
On the downside, Intel lost 1.68% as JPMorgan resumed tracking the stock with an “underweight” recommendation.
The S&P in the high-tech sector, which had taken 8.33% on Thursday, lost 0.61%.
On the foreign exchange market, the dollar fell 1.14% against a basket of benchmark currencies after a 2.12% plunge on Thursday, the sharpest in nearly seven years.
US bond markets are closed for Veterans Day.
(Written by Marc Angrand)
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