PARIS (Reuters) – The New York Stock Exchange rose slightly at the opening, with investors awaiting upcoming indicators that could give an idea of the extent of the Federal Reserve’s (Fed) easing.
In early trading, the Dow Jones index gained 75.21 points, or 0.19%, to 42,199.86 points, and the broader Standard & Poor’s 500 gained 0.08% to 5,722.94 points. The Nasdaq Composite gained 0.26%, or 46.88 points, to 18,021.154.
After the optimism of last weekend with the sharper-than-expected drop in Federal Reserve rates, the markets are waiting for confirmation of the scenario of a soft landing for the economy.
While the PMI indices published on Monday rather reinforced the vision of resilient activity across the Atlantic, the data concerning the price level did not completely reassure, while Fed officials are divided on the recent 50 basis point reduction.
“The split marks the first dissent by a Fed governor in 19 years, highlighting the differences of opinion on how best to manage inflation and economic growth,” said John Plassard, director at Mirabaud.
“As the Fed continues to address these challenges, further aggressive rate cuts remain possible based on available data,” he added.
Ahead of August PCE inflation released on Friday, markets will be watching US consumer confidence this afternoon.
Visa shares fell 3.4 percent as the U.S. Justice Department prepares to sue the company for monopoly on the debit card market, Bloomberg reported.
(Written by Bertrand De Meyer)
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