(News Bulletin 247) – The New York Stock Exchange rose on Thursday, driven by technology stocks and the latest inflation figures which confirm the scenario of a more measured approach on the part of the Fed.
At the end of the morning, the Dow Jones advanced 0.3% to 33,761.8 points, while the Nasdaq Composite index gained more than 1.2% to 12,074.9 points.
Like yesterday with consumer prices, this morning’s release of the producer price index eased fears about inflation, but this time with a much stronger effect.
While they were expected to be stable, producer prices contracted by 0.5% in March, an additional sign of the easing of inflationary pressures.
The conclusion of these figures is that inflationary pressures are easing, which should allow the Fed to show a little more patience, which is always encouraging from the point of view of the equity markets.
At the same time, the labor market is easing a little, which suggests an upcoming moderation of wages, knowing that wage increases were at the origin of the recent rise in inflation.
In this context, seven of the 11 major S&P sector indices are moving in the green, led by telecoms (+1.7%), non-essential consumption (+1.4%) and tech (+1.3%). ).
On the rise, Apple (+1.7%) signs the strongest progression of the Dow Jones while analysts from Credit Suisse and Canaccord Genuity have revised their objectives for the title upwards.
Another heavyweight of the ‘GAFAM’, Netflix climbs more than 3% in the hope of good surprises next Tuesday on the occasion of the presentation of its first quarter results.
Producer price data, which supports the scenario of an upcoming ‘pause’ from the Federal Reserve, is pushing down US government bond yields.
The yield on ten-year Treasuries is currently stabilizing around 3.42%, whereas it was still moving at 3.64% at the end of March.
The dollar is also suffering from the moderation of inflation, which removes the prospect of further increases in interest rates in the United States, with the euro now firmly camped above the threshold of 1.1050.
In a climate again marked by risk appetite, oil prices continued to rise, the May contract on American light crude (West Texas Intermediate, WTI) nibbling another 0.1% to 83.3 dollars.
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