PARIS (Reuters) – The New York Stock Exchange opened uncertainly on Wednesday as markets weighed the risks of a slowdown in U.S. activity.
In early trading, the Dow Jones index gained 80.05 points, or 0.19%, to 42,288.27 points, while the broader Standard & Poor’s 500 was stagnant at 5,733.60 points. The Nasdaq Composite lost 0.13%, or 24.16 points, to 18,050.357.
Investors are hesitant in an uncertain environment, with recession fears revived by the latest leading indicators, which suggest that activity remains in contraction in the industrial sector and that consumer sentiment is sagging.
These data are read in light of the latest decision by the Federal Reserve (Fed), which lowered its rates in order, the central bank explains, to “maintain strong growth”.
Seema Shah, head of global strategy at Principal Asset Management, points out that “since 1985, five of the S&P 500’s 10 best years have been when the Fed cut interest rates without a recession.”
“Stretched valuations may slow gains in U.S. stocks this time around, but historical data suggests investors have good reason to be cautious and optimistic,” the analyst said.
Apple fell 1.1 percent as sales of foreign-brand smartphones in China, including the iPhone, fell 12.7 percent in August from a year earlier, according to data from a government-affiliated research firm.
(Written by Corentin Chappron, edited by Kate Entringer)
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