2023-11-29 14:42:42
Traders on the New York Stock Exchange (NYSE)
The New York Stock Exchange opened higher on Wednesday thanks to a further decline in bond yields, itself fueled by growing optimism regarding an upcoming rate cut by the American Federal Reserve (Fed) following recent statements from several officials of the central bank.
In early trading, the Dow Jones index gained 78.51 points, or 0.22%, to 35,495.49 points and the broader Standard & Poor’s 500 rose 0.54% to 4,579.92 points.
The Nasdaq Composite gained 0.73%, or 103.85 points, to 14,385.60.
In today’s indicators, the publication of the second estimate of the gross domestic product (GDP) of the United States, which shows growth a little stronger than initially expected, did not cause the markets to react negatively, confirming according to the analysts the scenario of a soft landing of the economy.
Investors are now awaiting the Fed’s Beige Book at 7:00 p.m. GMT, which serves as a working basis for the FOMC, its monetary policy committee.
Christopher Waller, one of the governors of the Fed, did not rule out on Tuesday evening a drop in the cost of credit in the United States in the coming months, while another official of the central bank, Austan Goolsbee, estimated that inflation in the country was on track to record its biggest fall in 71 years.
“This is the first time that a Fed official has discussed the possibility of a cut,” Charalampos Pissouros, investment analyst at XM, said in a note.
The money markets are now counting with a 100% probability on a new pause on Fed rates during the meeting on December 12 and 13, while the probability of a first reduction in the interest rate in the United States in March rose from 34.6% to 44.5%, according to the CME Group’s FedWatch barometer.
In stocks, technology and growth groups like Nvidia, Tesla and Alphabet advance from 0.53% to 1.70%, while the yield on ten-year Treasuries drops around six basis points, to 4.284%.
In other compartments, General Motors jumped 10.86%, the automobile manufacturer having announced its intention to buy back $10 billion of its shares and increase the dividend paid to shareholders by 33%.
Foot Locker soars 18.07% following announcing that it anticipates a less significant drop than expected in its like-for-like sales in the fourth quarter.
Berkshire Hathaway is practically unchanged (+0.13%) following the announcement of the death of its vice-president Charlie Munger, aged 99.
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(Written by Claude Chendjou, edited by Blandine Hénault)
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