(Reuters) – The New York Stock Exchange opened higher on Wednesday on renewed risk appetite after bank concerns eased and as investors awaited the release of several indicators later in the week to assess the direction of US monetary policy.
In early trading, the Dow Jones index gained 245.09 points, or 0.76%, to 32,639.34 points and the broader Standard & Poor’s 500 rose 0.94% to 4,008.70 points.
The Nasdaq Composite took 1.17%, or 136.75 points, to 11,852.83.
Monday’s announcement of the takeover of deposits and loans from Silicon Valley Bank (SVB), as well as the absence of new signs of difficulties in the sector since the conclusion of the agreement, have in recent days allayed concerns over the health of the banking system.
The trend, however, remains fragile ahead of Thursday’s release of U.S. GDP data for the fourth quarter and Friday’s February PCE price index, which is the Federal Reserve’s (Fed) preferred measure of inflation.
These indicators will be watched all the more closely as the banking turmoil at the beginning of the month led the markets to reassess expectations of monetary tightening by the Fed.
Traders are betting on a pause in rate hikes in May, with the odds of a 25 basis point hike standing at 39%, according to CME Group’s Fedwatch Barometer.
Elsewhere, the pause in the rise in Treasury yields, after a sharp rise in the past two sessions, is helping tech and growth stocks rally, with Microsoft, Alphabet and Meta all in positive territory at the open. .
Chipmaker Micron is ahead 5.4% after saying it expects sales to increase by 2025, thanks in particular to the rise of artificial intelligence.
The group specializing in sportswear Lululemon flew 14% after saying it expects annual turnover and profit above estimates.
Boeing gained 0.8% after Ryanair said it was in talks with the aircraftmaker for a potential order of 100 planes.
(Written by Diana Mandiá, edited by Blandine Hénault)
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