Wall Street up after records

(New York) The New York Stock Exchange was clearly moving in the green on Thursday after having already broken records for its three indices the day before, propelled by the confirmed intention of the Federal Reserve (Fed) to lower interest rates several times This year.

The Dow Jones index gained 0.82%, the tech-heavy NASDAQ jumped 0.85% and the broader S&P 500 index climbed 0.53% around 10:30 a.m. ET.

On Wednesday, after Jerome Powell, Chairman of the Fed, was relatively optimistic about the path of inflation and the Monetary Committee maintained its forecast of three rate cuts of a quarter of a percentage point, Wall Street flew away.

The Dow Jones gained 1.03% to 39,512.13 points, the NASDAQ jumped 1.25% to 16,369.41 points and the S&P 500 advanced 0.89% to 5,224.62 points, new records historical.

The Fed left its high rates unchanged, as markets expected, but investors feared, given the stubborn inflation of the last two months, that the Federal Reserve would reduce its plans for rate cuts to only two.

“The markets seemed to like what they heard from the Fed,” commented Art Hogan of B. RIley Wealth Management.

For George Vessey, of Convera Financial Services, the Fed boss “made rather accommodating remarks when he said, for example, that the stubborn inflation at the start of the year was an “anomaly” because of “ seasonal problems.

In the bond market, yields were stable for ten-year Treasury bills at 4.27%.

Elsewhere among central banks, the Swiss National Bank (SNB) opened the door to rate cuts by becoming the first monetary institution to change its policy.

The SNB justified the reduction of a quarter of a point in its reference interest rate, to bring it to 1.5%, by its “effective” fight against inflation.

The Bank of England (BoE) for its part unsurprisingly maintained its interest rate, but opened the way to an upcoming monetary easing. The Bank of Norway left its rate at 4.5%, suggesting a first reduction during the autumn.

On the stock side, a certain excitement reigned on Wall Street with the IPO of the social network Reddit, the first entry on the New York Stock Exchange of a social network since Pinterest five years ago.

The listing of the platform created in 2005 and known for its discussion forums is an important test for the IPO market, which has been slowing down since a surge in September 2023.

Reddit stock, or RDDT, will debut at $34, at the top of the initial price range, for a valuation of some $6.4 billion. The listing will bring $748 billion in new money to the company.

Microprocessor and memory manufacturer Micron Technology soared almost 15% after a surprise profit in the second quarter and solid sales forecasts in the third.

Many rivals in the sector followed suit such as Western Digital (+6%), Seagate (+2.05%) or even AMD (+1%).

Apple shares lost 1.70% while the American media reported that the government was to announce on Thursday that it would take the Apple group to court for anti-competitive practices linked to the iPhone and the constraints set by the Californian group. to application developers.

The discount chain Five Below fell 12% after lower-than-expected results, with the brand complaining about the impact of in-store theft, a scourge that affects many retailers.

The banking sector was sought after like Bank of America (+1.55%) or Wells Fargo (+1.13%).

In terms of indicators, resales of apartments and houses jumped 9.5% in February in the United States, recording their biggest increase in a year and surprising analysts who were expecting a decline.

reference: www.lapresse.ca

Leave a Comment