by Stephen Culp

NEW YORK (Reuters) – The New York Stock Exchange ended higher on Thursday, erasing some of its losses from the day before, as economic data fueled optimism about a future easing of the Federal Reserve’s monetary policy (Fed) and investors’ appetite for risk.

The Dow Jones index gained 0.87%, or 322.35 points, to 37,404.35 points.

The broader S&P-500 gained 48.40 points, or 1.03%, to 4,746.75 points.

The Nasdaq Composite advanced 185.92 points (1.26%) to 14,963.87 points.

The main Wall Street indices settled into positive territory as the end of the session approached, notably in the wake of gains by semiconductor manufacturers after Micron Technology communicated quarterly forecasts above expectations.

They thus marked a movement opposite to that observed on Wednesday; they had plunged into the red at the very end of a hesitant session.

“Yesterday was an opportunity for investors to take profits,” said Greg Bassuk, managing director of AXS Investments in New York, citing the recent successive rises on Wall Street and saying he expect a “strong end to the year”.

Official data released today showed that growth in the US economy in the third quarter was not as robust as previously expected, while labor market tensions began to weaken – which the Fed considers to be an obstacle to controlling inflation. “The fact that quarterly GDP was not revised upwards, but on the contrary lowered, reassures investors that the path the Fed is on, stated last week, is not going to change anytime soon “, commented Peter Tuz, president of Chase Investment Counsel, Virginia.

At the end of its monetary policy meeting last week, the US central bank once again kept interest rates unchanged and indicated that its monetary tightening cycle was coming to an end, paving the way for a rate cut l next year.

Financial markets anticipate a 25 basis point rate cut starting next March, according to FedWatch.

Investors are awaiting the publication on Friday by the US Department of Commerce of the report on personal consumption to have important information on inflation in the United States.

All major sectors of the S&P-500 ended the session higher.

On the value side, among the movements of note, Micron Technology jumped 8.6% after announcing a quarterly turnover forecast above expectations, suggesting that the semiconductor sector will rebound next year after a year disappointing.

American electric vehicle makers, including Tesla and Rivian Automotive, rose after press reports that the United States was considering raising taxes on Chinese electric vehicles.

( Jean Terzian)

Copyright © 2023 Thomson Reuters