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MARKET REVIEW. The expanded index of the New York Stock Exchange, the S&P 500, rose again Friday morning after hitting a record the day before despite higher US inflation than expected.
The Toronto Stock Exchange’s flagship index rose early in the session, supported by strength in the base metals sector.
In Toronto, the S & P / TSX gained 80 points, or 0.4%, to 20,130 points.
In New York, the S&P 500 started the session up before falling back to equilibrium around 10:30 am at 4,239 points.
The Dow jones lost 29 points, or 0.09%, to 34,436 points.
The Nasdaq rose 22 points, or 0.16%, to 14042 points.
Thursday, the New York Stock Exchange had finished in the green despite a rise in consumer prices of 0.6% in the United States in May, higher than expectations (+ 0.4%). A too rapid rise sometimes tends to frighten investors, who fear that the American Central Bank (Fed) will take measures to slow it down.
But “a little inflation is often a good thing, because it shows strong trends in the economy,” notes JJ Kinahan of TD Ameritrade.
“As analysts have indicated, there is a strong underlying demand for areas like travel, outdoor activities, casinos, cruises and hotels,” he continues. If the consequence is that the prices must go up, it is not necessarily bad. “
In addition, the Fed repeats over and over that inflation is temporary and ensures that it does not plan to tighten its monetary policy, which is currently very accommodative, recalls Mr. Kinahan. A message that reassures the market.
Market players were also following the start of the summit of the G7 major powers (Germany, France, Italy, United Kingdom, Canada, Japan and the United States) on Friday in Cornwall, southwest of England.
In particular, leaders are due to discuss the recovery of a global economy shattered by the pandemic and the more equitable sharing of COVID-19 vaccines by rich countries.
A new Tesla
Among the values of the day, several titles very popular with stock market internet users, including the video game retailer GameStop (+ 5.38%) and the cinema chain AMC (+ 1.43%) recovered after falling the day before.
You’re here was down 1%. The manufacturer of electric vehicles presented Thursday evening from its Californian factory the first examples of the new luxury version, faster, of its sedan Model S, called “Plaid”, sold at 129,999 dollars.
Royal Caribbean was down 1.34%. Two individuals were diagnosed positive for COVID-19 on Thursday aboard his Celebrity Millennium, one of the first cruise ships to sail in North America since the start of the pandemic.
McDonald’s took 1.09%. The American fast-food giant claimed to have been the victim of a security breach that resulted in the exposure of private data of customers in South Korea and Taiwan, but ensured that the payment information of its customers was missing. not been stolen.
In the bond market, the 10-year rate on US Treasuries stood at 1.46%, down slightly from Thursday night.