by Shristi Achar A and Noel Randewich
(Reuters) – The New York Stock Exchange ended higher on Wednesday after data showed a slowing U.S. economy, bolstering expectations of a September pause in the Federal Reserve’s rate hike campaign (Fed ).
The Dow Jones index gained 0.11% to 34,890.24 points.
The broader S&P-500 gained 0.38% to 4,514.87 points.
The Nasdaq Composite advanced for its part by 0.54% to 14,019.31 points.
The Nasdaq has climbed to a closing high since Aug. 1, while the S&P-500 hit a nearly three-week high following a survey showing that the private sector in the United States has created fewer jobs than expected in August, suggesting that the labor market was becoming less tight.
Moreover, according to a new government estimate, the US gross domestic product (GDP) rose in the second quarter by 2.1%, against +2.4% according to an initial estimate.
“These jobs data in some way allays investor concerns about future Federal Reserve rate hikes,” said Rob Haworth, strategist at US Bank Wealth Management.
The prospect of a soft landing for the US economy has also supported demand for high-growth stocks and other riskier assets, to the detriment of so-called defensive sectors, he said.
High-profile tech stock year to date, Nvidia rose 1% to a record high.
The vast majority of traders are betting on a pause in the Fed’s monetary tightening cycle after its September 19-20 meeting. Some also anticipate that rates will remain at their current levels until November.
Investors are awaiting the release of the personal consumption expenditure price index on Thursday, the Fed’s preferred data for gauging inflation, and nonfarm payrolls data on Friday for additional clues on the campaign. interest rates.
Bond yields fell, with ten-year US Treasuries at 4.12%.
Nine of the eleven major sectors of the S&P-500 ended the session in the green, at the forefront of which were information technologies and energy.
On the values ​​side, among the movements to note, the rise of about 0.5% of Mastercard and Visa after information that the two companies were preparing to raise the contribution of credit cards. HP tumbled 6.6% as its full-year revenue forecast was downgraded due to slowing demand.
(Written by Jean Terzian)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
