PARIS (Reuters) – The New York Stock Exchange rose at the opening on Thursday, reassured about the trajectory of the American economy, with second-quarter growth having been revised upwards on Thursday.
In early trading, the Dow Jones index gained 278.23 points, or 0.68%, to 41,369.65 points, and the broader Standard & Poor’s 500 gained 0.27% to 5,607.36 points. The Nasdaq Composite gained 0.28%, or 49.13 points, to 17,605.156.
US growth in the second quarter was revised down to 3%, from a previous estimate of 2.8%, an encouraging figure for investors worried about the outlook for US activity after a disappointing monthly employment report in early August.
Furthermore, household consumption was revised to 2.9%, against 2.3% at first reading, and the underlying PCE inflation indicator revised slightly downward, to 2.8% against 2.9% previously announced.
These data suggest that activity remains strong, despite the Federal Reserve’s restrictive monetary policy, while inflation is slowing more than expected.
While this will encourage the central bank to ease monetary policy, rates may not come down as quickly as markets are hoping, with markets betting on two 25-basis-point cuts and one 50-basis-point cut this year.
PCE inflation for July, to be released on Friday, could also test investors’ scenarios.
In terms of values, Nvidia fell by 4.3% after reporting results in line with expectations, which nevertheless disappointed investors.
HP Inc fell 1.1% after it reported a fourth-quarter profit forecast on Wednesday that fell short of Wall Street expectations.
* For values ​​to follow, click on
(Written by Corentin Chappron, edited by Kate Entringer)
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.
