by Chuck Mikolajczak

NEW YORK (Reuters) – The New York Stock Exchange ended higher on Wednesday, benefiting from gains recorded by high-growth stocks, led by technology giants, even if caution marked the session ahead of the publication of inflation data and the opening of the results season.

The Dow Jones index gained 0.45%, or 170.57 points, to 37,695.73 points.

The broader S&P-500 gained 26.95 points, or 0.57%, to 4,783.45 points.

The Nasdaq Composite advanced 111.94 points (0.75%) to 14,969.65 points.

After a solid end to 2023, the main Wall Street indices are struggling to register a positive dynamic due to mixed economic data and comments from officials of the Federal Reserve (Fed) having caused doubts among investors about the timing and extent of a potential shift in the US central bank’s monetary policy.

“The market is reassessing its 2024 earnings and interest rate expectations, trying to justify the jump in prices we saw in November and December,” said Sam Stovall, Chief Strategist. at CFRA Research in New York.

“It’s kind of a good sign that the market is flat at the start of the year, because it suggests that investors don’t want to miss out on any additional good opportunities,” he said.

At the center of attention this week are the reports on consumer and producer prices in the United States, due Thursday and Friday respectively, which will provide new indications on inflation and could weigh on policy decisions monetary policy of the Fed.

The weekend will also mark the unofficial start of earnings season, with several major US banks – JPMorgan Chase, Bank of America, Citigroup and Wells Fargo – expected to publish declining quarterly profits.

The hypothesis that the Fed will cut rates by 25 basis points in March is no longer as favored by traders as it has been for several weeks. According to FedWatch, this scenario is anticipated at 67.6%, compared to 79% last week.

John Williams, president of the New York Fed, said Wednesday that it was premature to call for rate cuts, citing the road ahead to bring inflation back toward the 2 percent target.

Among the major sectors of the S&P-500, communication services recorded the largest increase, driven by the 3.65% jump in Meta Platforms which reached a session peak since September 2021 after Mizuho raised its target of course.

Other technology stocks, Microsoft and Nvidia, also contributed to the performance of the S&P-500. Nvidia gained 2.28% to climb to a closing record after semiconductor maker TSMC reported better-than-expected quarterly results.

In decline during the two previous sessions, Boeing increased by 0.92% after its general director, Dave Calhoun, recognized errors by the American aircraft manufacturer, more than 170 aircraft of which are grounded in the United States.

( Jean Terzian)

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