Wall Street up at the start of a crucial week for inflation

Wall Street up at the start of a crucial week for inflation
Wall Street up at the start of a crucial week for inflation

New York (awp/afp) – The New York Stock Exchange was trading in the green on Monday, an important week in terms of economic data on the front of inflation and consumer spending in the United States.

The Dow Jones index advanced 0.19%, the technology-dominated Nasdaq gained 0.25% and the S&P 500 rose 0.11% around 2:30 p.m. GMT.

Bond rates were slightly down, like the ten-year rate which fell to 4.47% compared to 4.49% at the last close.

Last week, the broad index, the S&P 500, the most representative of the market, gained 1.9%, ending Friday at 5,222.68 points, 0.6% of its historic record.

The Dow Jones posted a weekly gain of 2.2%, concluding at 39,577.84 points for its eighth session in the green in a row, while the Nasdaq increased by 1.1% ending the week at 16,407.05 points.

For Art Hogan of B. Riley Wealth Management, the upward trend was driven “by a slight increase in expectations of interest rate reductions from the Federal Reserve (Fed), mainly due to signs of a slowdown in the bond market. work”.

63% of investors expect a first rate cut in September, according to CME Group calculations on futures products.

This week, all eyes will be on Wednesday’s publication of US inflation with the CPI index for April. Other important data, also published on Wednesday: retail sales, which give a first estimate of consumption, the engine of the United States economy.

“These two indices have the capacity to move things significantly in relation to monetary policy and expectations of rate cuts,” warned Art Hogan.

Inflation figures “are likely to show that price rises, excluding food and energy, likely moderated in April for the first time in six months, offering a glimmer of hope that price pressure is starting to ease.” subside,” added the analyst.

Briefing.com forecasts that prices advanced by 0.3% compared to +0.4% in March.

“This is going to be an important week that will determine whether the S&P 500 and the Nasdaq will be relaunched to new highs or retreat,” commented Patrick O’Hare of Briefing.

The results season is coming to an end but some retail giants will still announce theirs this week, like on Tuesday, the DIY specialist Home Depot (-0.40% at 2:05 p.m. GMT), the Chinese giant also listed on Wall Street Alibaba (+5.50%) as well as, Thursday, the number one hypermarket Walmart (+1.03%).

Arm gained more than 2%. Champion of microprocessor architectures, the British subsidiary of the Japanese group Softbank must launch a division specializing in the manufacturing of chips for AI, with a prototype planned by spring 2025, according to information from the Japanese economic daily Nikkei published this week -end.

The highly volatile shares of video game distributor GameStop, which had fueled a viral frenzy on Wall Street in 2021, had a new bout of fever (+71.76% to $29.99 around 2:15 p.m. GMT).

One of the stock marketers with the nickname “Roaring Kitty”, who inspired the forced liquidation of short positions on stocks like GameStop and shook Wall Street in early 2021, reappeared on X (formerly Twitter) for the first time in three years with an enigmatic drawing.

The so-called “meme” or viral action soared as did other favorite titles of online investors such as AMC cinemas (+17%) or Reddit (+10.20%), the widely used forum forum. by stock marketers.

vmt/spi

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