(Reuters) – The New York Stock Exchange opened higher on Wednesday, amid strengthening expectations of rate cuts from the US Federal Reserve (Fed), after a series of macroeconomic indicators suggesting a slowdown in the growth in the United States.
In early trading, the Dow Jones index gained 87.61 points, or 0.23%, to 38,798.90 points and the broader Standard & Poor’s 500 rose 0.44% to 5,314.41 points.
The Nasdaq Composite takes 0.67%, or 112.76 points, to 16,969.80.
Despite opening lower, Wall Street’s main indexes finished in the green on Tuesday, with interest-rate-sensitive real estate stocks leading the gains.
Markets now expect the Fed to ease by around 44 basis points this year. Additionally, expectations for a September rate cut are now around 65%, up from less than 50% last week, according to the CME’s FEDWATCH tool.
The ADP survey showed Wednesday that the private sector in the United States had created fewer jobs than expected in May. Operators are now awaiting the publication of the monthly report from the US Department of Labor on Friday to have a clearer view of the health of employment in the world’s largest economy.
In values, digital giants like Nvidia, Microsoft and Amazon, sensitive to rates, take between 1.25% and 0.15%.
Hewlett Packard soars 13.18% after announcing on Tuesday that it expects a turnover higher than expectations in the third quarter, driven by demand for its artificial intelligence servers.
(Written by Augustin Turpin)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
