PARIS (Reuters) – The New York Stock Exchange opened higher on Thursday the day after a decision by the Federal Reserve considered encouraging by investors.
In early trading, the Dow Jones index gained 231.13 points, or 0.61% to 38,134.42 points and the broader Standard & Poor’s 500 rose 0.75% to 5,056.06 points. The Nasdaq Composite takes 1.00% or 155.61 points, to 15,761.091.
The Fed announced on Wednesday that it would maintain its rates at their current levels, while emphasizing that the economy remained solid and that inflation could return to its target without a significant increase in unemployment.
The markets had already fully integrated the Fed’s change in positioning, with the 10-year yield having increased by more than 78 basis points between January and last Wednesday at the opening, and investors therefore focused on the optimism of the central bank.
“The May meeting was considered accommodative (…), with markets focusing on the statements of Fed President Jerome Powell, who ruled out the possibility of a further rate hike,” note BofA strategists .
In terms of values, Qualcomm gained 7.8% after publishing on Wednesday a turnover higher than Wall Street’s expectations.
EBay lost 4.9% after announcing on Wednesday that its second quarter turnover would be lower than Wall Street estimates.
(Written by Corentin Chappron, edited by Jean-Stéphane Brosse)
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