PARIS (Reuters) – The New York Stock Exchange rose at the opening on Thursday, with investors welcoming the latest inflation data showing a continued slowdown, fueling expectations of an end to the Federal Reserve’s monetary tightening cycle ( Fed).

In early trading, the Dow Jones index gained 197.49 points, or 0.56% to 35,627.91 points and the broader Standard & Poor’s 500 rose 0.15% to 4,557.56 points. The Nasdaq Composite takes 0.12% or 17.22 points, to 14,275.998.

According to data released an hour before the opening, PCE inflation, a measure of price developments favored by the Fed, rose in October at its weakest pace since the start of 2021.

Separately, consumer spending slowed, while weekly jobless claims rose last week, signaling that U.S. activity is also starting to slow.

These indicators support market expectations, which are betting that the Federal Reserve is finished with rate hikes, and that it will begin to ease them quickly.

A first rate cut of 25 basis points is integrated into money market prices for May, according to the Fedwatch tool provided by CME, with a minority of investors even betting on a first cut as early as March.

Investors will nevertheless remain attentive to the outcome of the ongoing OPEC+ meeting, as a drop in oil production could have an impact on inflation.

In terms of values, Ford Motor gained 1.2% after estimating the cost of its new social agreement in the United States at $8.8 billion and lowering its profit forecasts for the whole year.

Cancer drug manufacturer Immunogen soars 81.5% after the announcement of its takeover, for $10.1 billion, by Abbvie (+0.1%).

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(Written by Corentin Chappron, edited by Blandine Hénault)

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