by Lewis Krauskopf, Ankika Biswas and Shashwat Chauhan
(Reuters) – The New York Stock Exchange ended higher on Monday, driven in particular by gains in Amazon and the energy sector, while bond yields continued to rise, amid a search for clarification on exact contours of the policy of the American Federal Reserve (Fed).
The Dow Jones index gained 0.13%, or 43.04 points, to 34,006.88 points.
The broader S&P-500 gained 17.38 points, or 0.40%, to 4,337.44 points.
The Nasdaq Composite advanced 59.51 points (0.45%) to 13,271.32 points.
While the Fed on Wednesday dashed hopes of a possible cut in interest rates next year, investors are awaiting comments from officials of the American central bank in the hope of obtaining details on the continuation of its monetary tightening campaign, while keeping an eye on economic data.
The S&P-500 experienced its largest weekly decline last week since last March.
Yields on major US Treasury bonds continued to rise to sixteen-year highs.
A “tug of war” pits “investors apparently becoming increasingly concerned about ‘higher for longer’ (rates) against speculators saying we may have seen a correction and can start building at higher levels,” commented Chuck Carlson, Managing Director of Horizon Investment Services.
Among the main sectors of the S&P-500, energy was the best performer while so-called defensive sectors, sensitive to interest rates, such as utilities, declined.
As the third quarter draws to a close, investors expect the market to be relatively calm until earnings season kicks off in the coming weeks.
Market players will monitor economic data expected this week, such as US gross domestic product (GDP) in the second quarter, as well as speeches by Fed officials, including its President Jerome Powell.
In an interview with CNCN on Monday, Chicago Fed President Austan Goolsbee said inflation above the 2% target was a greater risk than a further slowdown in the U.S. economy from tightening. monetary policy of the central bank.
On the value side, among the movements to note, the 1.7% increase in Amazon after the group announced that it would invest up to 4 billion dollars in the startup Anthropic in order to respond to growing competition in the field of artificial intelligence.
( Jean Terzian)
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