2023-06-30 20:04:11
The New York Stock Exchange ended the session, the month and the half strong on Friday, rejoicing on a slowdown in inflation in the United States while Apple closed for the first time above the mark. 3,000 billion dollars of capitalization.
The Dow Jones index gained 0.84% to 34,407.60 points and the technology-dominated Nasdaq climbed 1.45% to 13,787.92 points, marking its best first half since 1983. The broader S&P index 500 advanced 1.23% to 4,450.38 points, and thus posted its best first six months of the year since 2019.
Over the month, the indices gained almost 6% for the Nasdaq and the S&P 500 and more than 4% for the Dow Jones.
“The past two years have been difficult and it feels good to end this semester on a positive note. I suspect this is not the end of it,” said Tom Cahill of Ventura Wealth Management.
Inflation in May in the United States, measured by the PCE index, the preferred barometer of the American central bank (Fed), slowed to 3.8% over one year once morest 4.3% the month before, according to new data from the Commerce Department released on Friday. Over one month, it fell to +0.1%.
Another positive indicator in the eyes of the Fed, household spending slowed its growth to +0.1% over the month once morest +0.6% in April. By raising rates, the central bank seeks to slow down demand, and therefore consumer prices.
“Inflation came out in line with forecasts but the trend continues to be positively downward,” commented Tom Cahill. “Granted it’s not slowing down as fast as the central bank (Fed) would like but there will be a lot of other data before the next monetary meeting,” the analyst told AFP.
In addition to the good news on the inflation front, consumer confidence in June improved markedly, reaching its highest level in four months. The index measuring this confidence rose 8.8% from May more than expected, according to the barometer of the University of Michigan.
These data provide grist to the mill “of the doves of the Fed”, that is to say to those who are less favorable to the continuation of the increase in key rates, said Andrew Hunter of Capital Economics. According to him, during the monetary meeting at the end of July, the Fed will raise the cost of credit once more but that it will be “the last time”.
Taking advantage of the enthusiasm of the Nasdaq, Apple – already the most important group on the stock market – for the first time closed above the bar of 3,000 billion in capitalization. The title had to exceed 190 dollars to reach this valuation. It ended on a jump of 2.31% to 193.97 dollars or a capitalization of 3.051 billion dollars.
A strong rating from Citigroup bank helped boost the stock, said Patrick O’Hare of Briefing.com. Since the beginning of the year, the title of Apple has climbed more than 50%. “It’s hard to say you’re in a bear market when a symbolic stock like Apple is hitting new highs,” Cahill said.
Elsewhere on the coast, all the big names in technology had the wind in their sails. On the processor side, Nvidia climbed 3.63% and AMD 2.40%. Meta and Amazon gained almost 2%.
After disappointing results announced the day before following the close, Nike slipped 2.65% to $110.37. The American sports equipment manufacturer Nike recorded a sharp drop in its quarterly net profit, under the effect of markdowns to reduce its inventories and cost increases, despite an increase in turnover.
While the travel season is looking good, the cruise line Carnival took off (+9.73%), followed by Norwegian Cruise (+4.16%).
On the bond market, yields on Treasury bills, which had risen the day before, remained stable at 3.83% for ten-year ones.
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