2023-08-25 20:01:55
The New York Stock Exchange concluded a small rise on Friday in a jagged session where the market finally accommodated itself without conviction to the firm but cautious speech of Jerome Powell, president of the American central bank (Fed).
The Dow Jones index rose 0.73% to 34,346.90 points, the tech-heavy Nasdaq rose 0.94% to 13,590.65 points and the S&P 500 rose 0.67% to 4,405, 71 dots.
“The general tone of Mr. Powell’s speech in Jackson Hole, Wyoming, where a meeting of central bankers is taking place “was one of cautious optimism coupled with a clear determination that we will not take any risks on the evolution of inflation,” summarized Ian Shepherdson, chief economist of Pantheon Macroeconomics.
The Fed boss reiterated that inflation was “too high”. “We are ready to raise interest rates further if necessary,” he said, adding that the Fed would proceed “cautiously” in studying economic data.
“I think Mr. Powell has stayed in line with expectations. He is keeping all his options on the table and the evolution of rates will depend on economic data,” Joe Manimbo of Convera Financial Services told AFP.
Also for Maris Ogg of Tower Bridge Advisors, the Fed boss “just repeated what he said before and brokers are starting to take what he says at face value, which is to say it all depends Datas”.
The portfolio manager believed that the market was “without much conviction, going back and forth, with little volume”. “Of course, investors were scared before his speech,” she said, referring to the fall in indices the day before.
“But I think we’re missing a trend in this period when there is little economic news until Labor Day”, a widely observed holiday in the United States which will fall on Monday, September 4.
Slightly in the green before the Fed chief’s speech, the indices momentarily slipped into negative territory following the speech, only to rise once more.
On the bond market, ten-year rates remained flat at 4.23% like the day before. The dollar strengthened slightly once morest the euro (+0.15%).
On the side, Nvidia, the darling of the artificial intelligence sector which announced much better than expected results on Wednesday, finally dropped the ballast (-2.43%) to 460 dollars.
Chipmaker Marvell Technology fell 6.62% as its second-quarter results came in only slightly above forecasts.
The specialist in credit purchase solutions Affirm Holdings soared by more than 28% having posted a higher than expected increase in its income. The company that offers solutions to “buy now and pay later” also reduced its loss.
Hawaiian Electric, at the center of controversy over its handling of power supply during the deadly Hawaii fires, plunged 18.63%. The operator suspended the payment of a dividend to conserve cash.
Warner Bros. Discovery studios lost 3.39% as they postponed the release of several films, including the highly anticipated sequel to “Dune”, due to the strike movement which has paralyzed Hollywood since May.
The shopping delivery platform Instacart has announced that it has filed the documents for an IPO on the Nasdaq, under the symbol “CART”.
The introduction date is not yet known. The group is profitable with a profit of 428 million dollars in 2022 and a turnover which grew by 39% last year to 2.5 billion dollars.
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