The New York Stock Exchange opened higher on Monday, propelled by the good performance of the big names in tech. Investors are also preparing to welcome a new set of indicators.
Around 4:20 p.m., the Dow Jones gained 0.54%, the Nasdaq index gained 1.75% and the broader S&P 500 index advanced 1.12%. “It will be a busy week in terms of data,” Art Hogan, analyst at B. Riley Wealth Management, commented to AFP. “The volume of trade” will be “greater” because “most participants are back” after the end-of-year holidays, he added.
The week will also be shortened, given that the American stock markets will be closed on Thursday, a day of national mourning in the United States to pay tribute to former President Jimmy Carter, who died on December 29 at the age of 100.
The New York market is awaiting several data on American employment this week, including the monthly report from the ADP firm on job creation in the private sector in the United States for December, on the program for Wednesday. The PMI index from the ISM institute, published Tuesday, will also provide information on the state of activity in the services sector.
On Wednesday afternoon, the American market will keep an eye on the Fed minutes (minutes of the last meeting of the American central bank). In addition, Wall Street reacted Monday to information from Washington Post according to which US President-elect Donald Trump is considering a more limited increase in customs duties than expected.
Relying on three sources close to the matter, the American daily argues that these increases in customs tariffs on imports, announced by Donald Trump – who is to be inaugurated president on January 20 – would only concern certain sensitive sectors, linked to national or economic security for example.
“It’s false,” Donald Trump denied on his Truth Social network. “The article from Washington Postciting supposedly anonymous sources, which do not exist, falsely asserts that my pricing policy will be reduced. This is false. THE Washington Post knows it’s false. This is a new example of fake news,” wrote the future occupant of the White House.
On the bond market, the yield on 10-year US government bonds stood at 4.62%, compared to 4.60% at the close on Friday. Elsewhere, on the stock market, the indices were driven Monday morning by “the gains made (…) by large capitalizations and chip manufacturers”, observed Patrick O’Hare, analyst at Briefing.com, in a note.
The semiconductor sector took off, like Nvidia (+3.42%), Broadcom (3.59%), AMD (+3.23%) and Intel (+1.69%). Micron jumped (+9.50%).
According to Patrick O’Hare, this move “follows the impressive results of Foxconn”. The Taiwanese electronics juggernaut, a key supplier to Apple, announced on Sunday a 42% jump in sales in December year-on-year, achieving an 11.37% increase in revenues across the entire The year 2024, a record.
The tech sector was also pushed by an announcement from Microsoft (+1.88%) on Friday. The group plans to spend $80 billion over one year to build data centers needed to deploy generative artificial intelligence (AI) models and applications.
US Steel gained ground (+4.07%) after the group announced that it was taking legal action alongside Nippon Steel against the administration of Joe Biden for “illegal interference” in the planned acquisition of the American group by the Japanese steelmaker.
The two groups said they had filed an appeal before a US appeals court to challenge the review process of this transaction, believing that President Biden had used his influence improperly for political purposes.
The streaming platform FuboTV was catapulted (131.70%) after Disney announced that it was going to combine part of its activities with its competitor, and “become majority owner” of FuboTV.
Frontier Group, parent company of the low-cost airline Frontier Airlines, gained altitude (+15.11%) after having revised its forecasts for the fourth quarter upwards, helped in particular by an “improvement in operational performance and customer experience. (AWP)
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