PARIS (Reuters) – The New York Stock Exchange opened slightly higher on Monday as investors awaited key economic indicators and results from Nvidia, Wall Street’s second-largest market capitalization.
In early trading, the Dow Jones index gained 0.30% to 41,304.79 points and the broader Standard & Poor’s 500 rose 0.18% to 5,643.35 points.
The Nasdaq Composite is virtually stable at 17,873.74 points.
Markets, which welcomed comments by US Federal Reserve Chairman Jerome Powell on Friday that “the time has come” to reduce borrowing costs, remain cautiously optimistic.
They are expecting the US PCE price index for July on Friday, while the second estimate of the country’s gross domestic product (GDP) for the second quarter will be published on Thursday.
On the corporate side, the quarterly financial accounts of Nvidia, the flagship stock in artificial intelligence, will be known on Wednesday at the close of Wall Street, while the results of Dell, Salesforce and Gap are also expected during the week.
“Expectations remain very high. Nvidia cannot afford any missteps at current valuations. Everything from results to guidance will have to be perfect to sustain the rally,” said Ipek Ozkardeskaya, an analyst at Swissquote Bank.
Regarding monetary policy, while the markets are expecting a first cut in key rates in the United States on September 18 in the current cycle, Ipek Ozkardeskaya believes that “developments on the employment side will determine the extent of the reductions” in borrowing costs.
On the bond market, the yield on 10-year Treasuries fell by 2.7 basis points on Monday to 3.780%. This easing was helped by the publication of an indicator of investment plans by American companies which showed that new “core” orders for capital goods manufactured in the country unexpectedly fell by 0.1% in July.
In terms of values, Nvidia rose by 0.74%, consolidating its position as the second largest global market capitalization behind Apple.
Oil groups Exxon (+1.37%), Occidental Petroleum (+1.38%) and Halliburton (+1.51%) are sought after in the wake of the increase of more than 2.5% in oil prices. Reports of a halt in crude production in Libya have amplified fears of a disruption in supplies as the conflict between Israel and Hamas continues.
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(Written by Claude Chendjou, edited by Sophie Louet)
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