PARIS (Reuters) – The New York Stock Exchange opened higher on Friday as U.S. big-cap technology stocks recovered while the in-line PCE inflation figure did not undermine the assumption of a September interest rate cut.
In early trading, the Dow Jones index gained 397.38 points, or 1%, to 40,332.45 points and the broader Standard & Poor’s 500 rose 0.71% to 5,437.84 points.
The Nasdaq Composite gained 0.7%, or 120.49 points, to 17,302.22.
The positive trend is supported by mega-capitalizations such as Apple, Nvidia, Microsoft, Meta Platforms, Amazon which are gaining from 0.10% to 2.25% after a week of turbulence in the sector due to fears of an overvaluation of the “Magnificent Seven”.
Chip giants Intel, Broadcom, Qualcomm, Micron Technology and Arm Holdings are up 0.94% to 3.17%.
The recovery in tech coincides with the decline in the volatility index on Wall Street, which stands at 17.5 points (-5.20%) after climbing to a 14-week peak on Thursday.
Other stocks that are contributing to the stock market’s performance include 3M, considered a reliable barometer of the economy. The industrial conglomerate is up 13.75% after raising the bottom of its adjusted annual profit forecast range on Friday.
On the macroeconomic indicator side, the Commerce Department announced Friday that the PCE consumer price index in the United States rose by 0.1% over one month in June, as expected, after stability in May.
Traders continue to price in a first rate cut from the Federal Reserve in September, while the yield on 10-year Treasuries fell 5 basis points to 4.2016%.
(Written by Claude Chendjou, edited by Sophie Louet)
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