2023-08-30 20:01:36
The New York Stock Exchange concluded a cautious rise on Wednesday, a fourth consecutive positive session, helped by new signs of a cooling in the labor market in the United States.
The Dow Jones index rose 0.11% to 34,890.24 points. The Nasdaq, with strong technological coloring, took 0.54% to 14,019.31 points. The broader S&P 500 index, with a gain of 0.38% to 4,514.87 points, rose again for the first time in nearly a month above 4,500 points.
After a hitherto difficult month of August, Wall Street was able to post a fourth positive session in a row thanks to new economic data below expectations which seemed to show “that the Fed’s restrictive policy (US central bank, editor’s note) cooling the world’s largest economy,” according to Convera Financial Services analyst Joe Manimbo.
Published before the opening of the market, the ADP / Stanford Lab survey on employment in the private sector in the United States showed a sharp deceleration in job creation in August, to 177,000, half less than in July , and below expectations.
Another figure caught the attention of investors: the downward revision of US GDP growth in the second quarter, to +2.1% at an annualized rate instead of 2.4% in the first estimate.
Markets have been “cautiously bullish,” commented Interactive Brokers economist Jose Torres.
“Optimism that a looser labor market could help dampen inflationary pressures strengthened with the ADP report showing that job growth slowed significantly in August,” he explained. .
These data were released two days before the publication on Friday of the official US employment report for August. Previously, on Thursday, household income and expenditure will be published for July, but above all inflation according to the PCE index, the Fed’s favorite measure.
“If there is a trend of lower hiring and fewer job openings, the Fed will be more comfortable ending the monetary tightening cycle,” said Oanda analyst Craig Erlam.
Bond rates, which had slipped sharply on Tuesday on the announcement of a sharp reduction in the number of vacant jobs (JOLTS survey) in the United States in July, remained around their lowest levels in three weeks. The ten-year yield remained at 4.11%.
The dollar fell further to a two-week low against the euro.
On the odds, the technology was carried by a return from Nvidia, the designer of the super-powerful chips sought for artificial intelligence, which took almost 1%.
Some technology mega-caps drove the Nasdaq, such as Apple (+1.92%), Netflix (+1.09%) or Alphabet (+1.06%).
Customer relations software giant Salesforce (+1.45%) soared 5.91% in electronic trading after the close, as it raised its forecast for annual sales and profits. The group recorded a stronger than expected quarterly profit and an increase in its turnover to 8.60 billion dollars.
Nikola, the electric truck maker that temporarily halted sales of some vehicles after a battery recall, lost 2.31% to $1.27.
The title of the wholesale chain Costo evolved without much amplitude (+0.27% after a stable closing) before the publication of its quarterly results.
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