By Christmas Randewich and Sukriti Gupta
(Reuters) – The New York Stock Exchange ended up on Thursday while the solid forecasts communicated by Oracle fed the enthusiasm around artificial intelligence (AI), relegating the concerns about tensions to the Middle East and compensating for Boeing.
The Dow Jones index gained 0.24% to 42,967.62 points.
The wider S&P-500 took 0.38% to 6,045.26 points.
The Nasdaq Composite advanced 0.24% to 19,662.49 points.
Oracle jumped 13.3%, standing at a record level, after raising its forecast of annual turnover by citing the high demand for its services linked to AI.
Other technological values, such as Microsoft and Nvidia, have increased by more than 1%.
It is another play in the mosaic of capital expenses for AI, with the continuous need for additional capacities to fuel the AI ​​revolution, “said Art Hogan, chief strategist of B. Riley Wealth, about Oracle.
“When the wind blows in this direction, it is obvious that key players such as Microsoft and Nvidia also take advantage of it,” he added.
Boeing gave up almost 5% after a 787-8 Dreamliner device operated by Air India crashed a few minutes after takeoff in Ahmedabad, in the west of India, killing more than 240 people according to the last assessment of the authorities.
In addition, as the day before, the signs of exacerbated tensions in the Middle East weighed on the markets.
US President Donald Trump said on Wednesday that US staff left the region because it could become a “dangerous place”, against the backdrop of concerns that a potential failure of negotiations between Washington and Tehran on Iranian nuclear power gives rise to a conflict.
While a new cycle of discussions between high American and Iranian representatives is scheduled for Sunday, Tehran warned that he would hit American bases in the Middle East if the United States came to bomb Iran, as Donald Trump threatened several times in the event of an impasse in talks.
Economically, data on production prices in the United States and unemployment in the country, published during the day, report a possible slowdown in the labor market.
This has helped reduce investor fears about inflationary pressures arising from customs duties, while strengthening the prospect of seeing the Federal Reserve (Fed) lower its interest rates.
According to Fedwatch of CME, the traders rely 60% on a drop in rates of 25 base points by September. It is expected that officials of the American central bank do not change their monetary policy at the meeting scheduled for next week.
Investors expect the United States to seal bilateral trade agreements reducing the vast so-called “reciprocal” customs taxes announced by Donald Trump in early April, with the effect of diving the financial markets.
Since then, in the wake of the stay granted by the American president for the holding of multiple negotiations, the S & P-500 has recovered from its hollow and close to its record levels last February.
Goldman Sachs revised downwards the probability of a recession of the American economy, at 30% against 35%, citing less uncertainty concerning the Trump administration’s commercial policy.
Among the eleven major sectors of the S&P-500, eight finished the day’s session in the green, with public services and information technologies in mind, which took 1.26% and 1.01% respectively.
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(Written by Jean Terzian)
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