(Reuters) – The New York Stock Exchange opened in the green on Friday, with index futures turning higher with the publication of the latest inflation figures an hour before the bell, this data having reinforced the hopes of operators on the upcoming interest rate reductions from the US Federal Reserve (Fed).
In early trading, the Dow Jones index gained 60.83 points, or 0.16%, to 38,172.31 points and the broader Standard & Poor’s 500 rose 0.20% to 5,245.77 points.
The Nasdaq Composite takes 0.25%, or 41.41 points, to 16,778.49.
Prices increased slightly in April in the United States, in line with expectations, according to data released Friday by the Commerce Department.
The PCE consumer price index rose 0.3% in April, in line with the previous month’s unrevised figure. Over one year, the index increased by 2.7%, as in March.
This unsurprising increase in the Federal Reserve’s favorite price dynamics indicator, faced with persistent inflation, reassured the markets which saw the prospect of rate cuts receding in 2024 after a series of economic data.
“This is a positive report for the market. It appears that the headline and core numbers are in line with expectations,” said Art Hogan, analyst at B Riley Wealth.
After the publication of the report, operators’ estimates of US rate reductions by September rose from 49% to 51%.
In terms of values, Dell Technologies plunged around 17% after reporting first-quarter revenue above consensus on Thursday, supported by growing demand for its servers powered by AI.
Trump Media stock fell 2.77% after former President Donald Trump was convicted criminally in the Stormy Daniels affair.
Marvell Technology fell 5.3% after lower-than-expected first-quarter revenue for the chipmaker.
On the bullish side, clothing manufacturer GAP soars 16.6% after raising its annual revenue forecast, while Zscaler jumps 14.3% after announcing forecasts for higher revenue and profit to consensus for the fourth quarter.
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(Written by Augustin Turpin, edited by Blandine Hénault)
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