Le parquet du New York Stock Exchange ( GETTY IMAGES NORTH AMERICA / SPENCER PLATT )
The New York Stock Exchange opened higher on Thursday, attempting a revival after the previous day’s drop, following the message from the American central bank (Fed), which wants to significantly slow down its monetary easing.
Around 2:50 p.m. GMT, the Dow Jones rose by 0.87%, the Nasdaq index by 0.92% and the broader S&P 500 index by 0.91%.
“Operators are preparing for a rebound with, in mind, the idea that the Dow Jones remains on its worst streak since 1974 and that the Russell 2000 (index which only includes SMEs) has just experienced its worst session since June 2020” , explained, in a note, Patrick O’Hare, of Briefing.com.
The Dow Jones has just experienced ten negative sessions in a row, a first in 50 years.
On Wednesday, the New York market reacted very badly to the communication from the Fed, which lowered its key rate by a quarter of a point but indicated that it only anticipated two additional reductions in 2025.
The president of the institution, Jerome Powell, recognized that the members of the Fed were in uncertainty, particularly in view of disruptive measures from the future Trump government, which could in particular revive inflation.
“We will see if this momentum lasts throughout the session,” said Karl Haeling, of LBBW, for whom “the disruptions, the chaos, have begun”.
“There was the surprise from the Fed yesterday and now we face a possible government shutdown this weekend,” the analyst said.
Donald Trump said on Wednesday his opposition to a transpartisan budget agreement which had to be voted on before Friday evening, the deadline beyond which the American government would no longer be financed.
The president-elect echoed criticism from entrepreneur Elon Musk, to whom Donald Trump entrusted a mission to examine public spending, but also from several elected Republican officials.
Donald Trump and his allies “already have the power to block something, but I don’t know if they are able to move things forward” in the short term, Karl Haeling was alarmed.
For the moment, the hunt for bargains triumphed over its concerns on Wall Street, and investors set their sights on stocks that were shaken up on Wednesday, such as Tesla (+2.19%), Netflix (+2.17%) or Nvidia (+1.69%).
Same observation for the Dow Jones, where financials regained color, from Goldman Sachs (+2.58%) to JPMorgan Chase (+2.39%) via American Express (+2.36%).
On the bond market, long maturities (beyond 5 years) continued their irresistible rise.
The yield on 10-year US government bonds stood at 4.57%, compared to 4.51% the day before at the close, the highest in almost seven months.
Speakers welcomed the results of the consulting firm Accenture (+6.34%), which surpassed analysts’ projections and raised its revenue target for the entire financial year, even if it lowered its profit estimate range.
The restaurant group Darden Restaurants, which notably controls the Olive Garden chain, was popular (+13.82%) after raising its growth estimates for its entire 2025 fiscal year, which will end at the end of May.
Sports equipment manufacturer Nike rose (+0.76%) before the post-market publication of its quarterly results, the first under the direction of new boss Elliott Hill, from whom the market is awaiting a profitable strategic reorientation.
The semiconductor manufacturer Micron remained in uncontrolled skid (-16.20%), after the publication on Wednesday of forecasts considered disappointing.
Biotech Vertex plunged (-12.98%) after a clinical trial of its non-opiate painkiller Suzetrigine showed results similar to those recorded for patients who had received a placebo.
Nasdaq
Related News :