by David French

NEW YORK (Reuters) – The New York Stock Exchange ended higher on Tuesday, erasing some of its losses from the day before, as investors again showed appetite for technology stocks as they awaited data on inflation and before the start of the quarterly results season.

The Dow Jones index gained 0.30%, or 126.13 points, to 42,080.37 points.

The broader S&P-500 gained 55.19 points, or 0.97%, to 5,751.13 points.

The Nasdaq Composite advanced 259.01 points (1.45%) to 18,182.92 points.

The three main Wall Street indices all fell on Monday by around 1%, under the effect of rising bond yields, in a context of escalating tensions in the Middle East and questions about the monetary policy of the American Federal Reserve (Fed).

With the decline in US Treasury bonds on Tuesday, investors turned to high-growth stocks, particularly technology stocks, whose giants helped lift the Nasdaq and the S&P-500 on Tuesday.

The market, however, remains guided by monetary policy. Investors continued to watch for decisions from the Fed throughout the year, which in September carried out an unusual rate cut of 50 basis points.

It is expected that the American central bank will further reduce interest rates by the end of the year, with economic data as a compass, also scrutinized by Wall Street to try to anticipate the Fed’s decisions.

Data published last week, including a better-than-anticipated monthly report on employment in the United States, pushed investors to revise their forecasts slightly downward, leaning towards a cut of 25 basis points rather than 50. .

According to FedWatch, traders are now betting 89% on a rate cut of 25 basis points at the next Fed meeting in November.

Investors are now awaiting the Consumer Prices (CPI) report, scheduled for Thursday.

“The labor market report (last Friday) and the CPI report are the two main elements for the Federal Reserve ahead of its next meeting” on November 6 and 7, underlined Jason Pride, director of research and investments. at Glenmede.

If the consumer price index comes out within the expected range, the prospect of a 25 basis point rate cut in November will be strengthened, he said.

Nine of the eleven sectors of the S&P-500 ended the session in the green, led by information technology, with gains recorded by Palantir Technologies and Palo Alto Networks.

Energy suffered the biggest drop, of 2.6%, due to the decline in oil prices.

On the values ​​side, Nvidia, among the “Magnificent Seven” of Wall Street, increased by 4.1%, its strongest increase in one session in a month. Apple, Tesla and Meta Platforms also finished higher.

In parallel with their decline on the Beijing stock exchange, the shares of large Chinese groups such as Alibaba and JD lost between 5% and 8%.

For further information, please click on the following codes: NYSE Nasdaq Market Summary………..25 Highest Volumes………….. .. Largest increases in %…………. Largest declines in %…………… Guide to American stock indices… . Market statistics………………………….. 10-year benchmark bond ………….. Guide to sectoral indices American… Guide to American stock markets…… Dow Jones Indices……………………. S&P Indices…. …………. Ex-dividend values……………………….. Forecasts for the Dow Jones and the S&P..

(Written by Jean Terzian)

Copyright © 2024 Thomson Reuters