PARIS (Reuters) – The New York Stock Exchange ended up on Thursday with the exception of the Dow Jones, still supported by Donald Trump’s victory in the US presidential election while the Federal Reserve’s (Fed) rate cut causes bond yields to fall.
The Dow Jones index finished stable, eroding 0.59 points to 43,729.34 points. The decline of Goldman Sachs and JPMorgan after their big gains on Wednesday weighed on the index.
The broader Standard & Poor’s 500 gained 44.06 points, or 0.74%, to 5,973.10 points.
The Nasdaq Composite advanced 285.99 points, or 1.51%, to 19,269.459 points.
American markets continue the rally started on Wednesday, following the election of Donald Trump.
“One of the main drivers of stocks in the short term will be the reduction of political uncertainty, a factor which generally generates high returns during presidential election years,” recall the strategists at Goldman Sachs.
The president-elect’s promises in terms of deregulation, which could fuel mergers and acquisitions and benefit the financial and energy sectors, and lower corporate taxes are encouraging investors.
The Fed’s 25 basis point rate cut announced Thursday, although in line with expectations, also encourages risky assets.
The central bank praised the “remarkable strength” of the US economy and suggested that the cycle of monetary easing initiated in September would continue.
“Inflation appears to be performing better and the job market is cooling without collapsing, so the Fed is able to continue gradually easing monetary policy towards the neutral rate,” summarize ING analysts. .
The central bank, however, refused to comment on the implications of Donald Trump’s economic program, with some observers fearing that it would reignite inflation.
The ten-year Treasury yield fell 8.9 bps to 4.3374% in the wake of the Fed’s decision.
In terms of values, Warner Bros Discovery jumped 11.8% after publishing figures much better than expected, which supported the communications sector, the best sectoral performance of the S&P 500.
JPMorgan lost 4.3% and Goldman Sachs 2.3%.
(Written by Corentin Chappron)
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