PARIS (Reuters) – The New York Stock Exchange opened higher on Tuesday as investors digested the latest data that gave little indication of the Federal Reserve’s next move.
In early trading, the Dow Jones index gained 63.23 points, or 0.15%, to 41,685.31 points, and the broader Standard & Poor’s 500 rose 0.36% to 5,653.19 points. The Nasdaq Composite gained 0.67%, or 117.73 points, to 17,709.86.
Retail sales rose 0.1% in August, compared with expectations for a 0.2% decline, suggesting that consumption is still resisting the Fed’s rate hikes.
These elements bring little new information to operators, who consider a 50 basis point drop increasingly likely on Wednesday.
According to Deutsche Bank analysts, such a level of uncertainty around the central bank’s next decision is unprecedented in 15 years.
“There are many combinations of rate cuts, dot plot changes, macroeconomic projections and (central bank) rhetoric that achieve the same goals. Beyond the very short-term volatility immediately after the rate move is announced, investors will be keen to understand the Fed’s perception of the economy,” said Felipe Villaroel, manager at TwentyFour AM.
In stocks, Microsoft gained 1.5% after announcing Monday that its board of directors had approved a new stock buyback program of up to $60 billion.
Amazon’s cloud computing division, AWS, will use Intel’s services to make chips for artificial intelligence. Intel takes 3.6%.
(Written by Corentin Chappron, edited by Blandine Hénault)
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