(News Bulletin 247) – The New York Stock Exchange wiped out its losses on Friday thanks to the good performance of its oil stocks in a context that remains marked by a certain trend of volatility.
At the end of the morning, the Dow Jones advanced 0.5% to 34,003.9 points, while the Nasdaq Composite won 0.3% to 12,177.3 points, thus continuing the yo-yo movements that had characterized the last sessions.
Initially oriented downwards, Wall Street had been penalized at the start of the session by the disappointment linked to the latest results from Amazon.
The title of the e-commerce giant indeed drops by 4.4% following the publication of quarterly accounts marked by a drop in profits for AWS, its flagship division.
After this opening down, the market quickly turned higher in the early morning so that eight of the 11 major S&P sector indices are now trading in the green.
In the wake of their quarterly results, the shares of the oil companies ExxonMobil and Chevron gained 1.8% and 0.1% respectively, which allowed the S&P energy index to sign the best performance of the day (+1, 2%).
The trend is also supported by the announcement of a deceleration in the PCE price index in March, an element likely to encourage the Fed to be more cautious in terms of rates.
Core PCE (excluding food and energy prices) – the Fed’s preferred measure of inflation – rose 4.6% in March, from +4.7% in February .
In view of such indicators, the central bank can finally hope to see inflation come back towards its target of 2%, after its exponential progression of the last two years, which could allow it to mark a pause in its cycle of monetary tightening. .
“It remains to be seen what tone the Fed will adopt, given that credit conditions have already tightened and disappointing results from First Republic have rekindled fears of a banking crisis,” comments Christophe Boucher, chief investment officer at ABN Amro Investment Solutions.
In the bond segment, the yield on the US 10-year fell below 3.46%, in response to this better than expected statistic.
The strongest progression within the Dow Jones returns to Intel (+5.5%) which revealed a loss in respect of its first quarter, but also a turnover much better than expected.
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