PARIS (Reuters) – The New York Stock Exchange opened with slight variations on Tuesday after recent records for the indices which had benefited from the euphoria around Donald Trump’s victory in the American presidential election.
In early trading, the Dow Jones index gained 77.44 points, or 0.17%, to 44,370.57 points and the broader Standard & Poor’s 500 rose 3.17 points, or 0.05% to 6,004.52 points.
The Nasdaq Composite lost 11.77 points, or 0.06%, to 19,286.99 points.
While the S&P 500 closed on Monday at a record level and the Russell 2000 index of small caps at its highest since November 2021, investors are now more cautious, not hesitating to take their profits, particularly in technology and groups related to crypto-assets. Bitcoin, however, came close to the record threshold of $90,000 on Tuesday.
Even if the enthusiasm linked to Donald Trump’s promises of tax cuts and deregulation has not completely subsided, the market is cautiously awaiting the American inflation figures on Wednesday. They will make it possible to assess the country’s economic and monetary prospects while Donald Trump’s program is considered inflationary.
Markets have already reduced their expectations for lower interest rates for next year, and on Tuesday the yield on two-year Treasury notes rose to 4.33%, its highest level since July 31.
Several officials from the American Federal Reserve (Fed), including Christopher Waller, Thomas Barkin, Neel Kashkari and Patrick Harker, are also due to speak during the day, while an intervention by the president of the American central bank, Jerome Powell, is scheduled to perform at an event in Dallas on Thursday.
In terms of values, Home Depot gained 0.41%, the group having announced on Tuesday that it anticipated a less marked drop than expected in its annual sales on a comparable basis. Its competitor Lowe’s advances by 0.65%.
Biotechnology company Novavax falls 7.21% on lowering its annual sales forecast, while Southeast Asian tech giant Grab Holdings jumps 6.73% on raising its revenue forecasts for the 2024 financial year.
(Writing by Claude Chendjou, edited by Kate Entringer)
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