PARIS (Reuters) – The New York Stock Exchange opened higher on Wednesday after the publication of the monthly report on inflation in the United States which calls for a reduction in key rates from the American Federal Reserve (Fed).
In early trading, the Dow Jones index gained 89.98 points, or 0.20%, to 44,337.81 points. The broader Standard & Poor’s 500 rose 30.30 points, 0.50% to 6,065.21 points.
The Nasdaq Composite takes 156.03 points, or 0.79%, 19,843.28 points.
An hour before the opening of Wall Street, the US Department of Labor indicated that consumer prices (CPI) in the United States had reaccelerated slightly in November on an annual and monthly basis, to 2.7% and 0 respectively. 3%, figures consistent with the Reuters consensus.
The underlying consumer price index (“core CPI”) remained stable in November, at 0.3% over one month and 3.3% over one year, figures also without surprise.
“Everything is exactly in line with expectations (…) it is very likely that the Fed will continue what it has planned, by reducing its rates by 25 basis points (on December 18),” predicts David Miller, director of investments at Catalyst Funds.
CME’s FedWatch barometer shows that bets on a Fed rate cut next week jumped to more than 96%, up from 86% before the CPI was released.
In values, mega-capitalizations, very sensitive to fluctuations in interest rates, are sought after: Tesla takes 1.77% and Nvidia 1.10%. While the technological heavyweights had weighed down Wall Street the day before, the sector rebounded by 0.73% on Wednesday.
In the rest of the stocks, General Motors gained 0.54% after announcing the abandonment of its capital-intensive robot taxi project in its loss-making joint venture Cruise.
Gamestop advances 7.35% thanks to a profit in the third quarter against a backdrop of cost reduction and refocusing on high-margin products.
In the red, Macy’s fell by 9.62% after lowering its annual profit forecast in a context of persistent weakness in demand.
(Writing by Claude Chendjou, edited by Kate Entringer)
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