PARIS (Reuters) – The New York Stock Exchange opened moderately higher on Friday, with risky assets reassessing the economic outlook after hitting records following the election of Donald Trump and the Federal Reserve’s rate cut.
In early trading, the Dow Jones index gained 109.36 points, or 0.25% to 43,838.70 points and the broader Standard & Poor’s 500 rose 0.16% to 5,982.43 points.
The Nasdaq Composite takes 0.01% or 2.56 points, to 19,272.016.
The euphoria of the election of Donald Trump is followed by the wait-and-see attitude of investors, who are seeking to understand how the Republican candidate’s economic program will translate.
Separately, the Fed lowered rates on Thursday, with the central bank taking an encouraging look at the US economy but warning that the pace of easing could slow as the neutral rate approaches.
“The expansionary budgetary policy proposed by D. Trump (tax cuts), increases in customs taxes or drastic reductions in immigration, including with significant deportations, risk proving inflationary and could change the trajectory of monetary policy during 2025″, recalls Xavier Chapard, strategist at LBPAM.
“As a result, the market now sees the key rate ending much higher in 2025 compared to expectations a month ago and the Fed’s assumptions from September.”
In terms of values, Airbnb fell 8.6% after reporting a turnover that investors considered insufficiently higher than consensus.
(Written by Corentin Chappron, edited by Kate Entringer)
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