2023-11-14 21:32:25
The New York Stock Exchange celebrated Tuesday with a jump in its indices the slowdown in inflation in the United States which seems to erase the prospect of a further rise in interest rates.
The Dow Jones index gained 1.43% to 34,827.70 points, the Nasdaq, with its strong technological coloring, jumped 2.37% to 14,094.38 points for its best session since February, while the S&P 500 gained 1.91% to 4,495.70 points.
The consumer price index in the United States (CPI) slowed in October to 3.2% year-on-year, compared to 3.7% in September, and 3.3% expected by analysts. Over a month, prices have not changed.
“The market loved the inflation number. It wasn’t much better than forecasts, but it was just what the market wanted to hear,” commented Steve Sosnick of Interactive Brokers.
The market “has erased the probability of a next rate increase and there is now a chance of a rate reduction as early as June and July” 2024, he added.
“Inflation remains well above the target but it is moving in the right direction,” commented Rubeela Farooqi, chief economist at HFE.
“It’s more than a soft landing, it’s a very soft soft landing,” quipped Austan Goosbee, president of the Chicago Fed.
The specter of the possibility of a final rise in rates evaporating in the eyes of the market, the dollar tumbled 1.72% once morest the European currency, passing the threshold of 1.08 dollars per euro.
Other favorable news on the budgetary policy side, the new Speaker of the House of Representatives Mike Johnson indicated on Tuesday that a temporary resolution avoiding a closure of federal services (“shutdown”) might be voted on in the House as early as Tuesday.
In terms of values, all eleven sectors of the S&P concluded high in the green, starting with the real estate sector (+5.32%), the one which has suffered the most from the rise in interest rates over the past ten years. eight months.
Banks rode the momentum, with Bank of America gaining more than 5% while Citigroup and Wells Fargo raked in more than 3%.
The DIY store brand Home Depot jumped 5.46% as the group announced sales and profits that were down but better than expected.
Electric vehicle manufacturers had the wind in their sails, notably Tesla which climbed 6.12% to $237.41, but also its smaller competitors like Rivian (+4.39%) or Lucid (+5.04 %).
The action of graphics card and microprocessor manufacturer Nvidia, very popular in the artificial intelligence sector, moved even closer to $500, gaining 2.13% to $496.56.
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