(New York) The New York Stock Exchange ended slightly higher on Monday, narrowly setting a new record for the S&P 500 and the NASDAQ, awaiting the big events of the week, namely American inflation and a decision monetary policy of the Fed.
Posted at 9:39 a.m.
Updated at 4:31 p.m.
The Dow Jones index advanced 0.18% to 38,868.04 points. The NASDAQ, with its strong technological coloring, gained 0.35% to 17,192.53 points, a new high. The S&P 500 rose 0.26%, bringing it within one point of also breaking a record at 5,360.79 points.
“The market reversed the trend and behaved rather well, considering the rise in bond rates” in the absence of macroeconomic data, commented Peter Cardillo of Spartan Capital while Wall Street had started in the red.
Two factors played a role, according to him, allowing stocks to recover. Oil prices soared by almost 3% per barrel of West Texas Intermediate, which supported stocks in the sector (+0.74%).
But it was above all technology that gave momentum to Wall Street, notably Meta (+1.96%), Microsoft (+0.95%), and Amazon (+1.50%).
The Apple group, which had climbed sharply on Friday, lost 1.91% even though it announced the launch of Apple Intelligence, a new system for optimizing the use of its devices, from the iPhone to the Mac, thanks to generative artificial intelligence (AI).
To do this, the Apple company has entered into a partnership with OpenAI, one of the masters of generative AI with ChatGPT.
Apple Intelligence will feature in the new version of the iOS 18 operating system, also unveiled Monday during the week-long developer conference.
Beyond these one-off announcements, investors have positioned themselves in relation to the macroeconomic announcements which will take place on Wednesday.
The market has no doubt that the Federal Reserve will leave rates unchanged at their highest level in more than twenty years. But the Fed must publish new forecasts and investors are watching for any indication of future rate cuts.
“The Fed meeting will be complicated by the morning publication of the CPI index. If inflation is low, everything is fine. If not, their breakfast will be ruined,” commented Chris Low of FHN Financial as well.
Analysts forecast that consumer prices rose 0.1% in May to remain at 3.4% year over year, according to MarketWatch.
The market believes at 46.7% that a Fed rate cut could occur in September, according to calculations on CME Group futures products.
Bond rates, spurred on Friday by much stronger job creation than expected at 272,000 in May, remained on an upward slope.
Around 6 p.m. (Eastern time), yields on ten-year Treasury notes settled at 4.46% compared to 4.43% on Friday.
After the European elections which saw a rise of the far right in France and Germany in particular and the surprise decision of French President Emmanuel Macron to call legislative elections, the euro took a nosedive.
It lost 0.36% against the dollar. The euro fell to 1.0762 dollars per euro.
Elsewhere on the stock market, the action of AI chip designer Nvidia gained 0.75% to $121.79, after its division by ten at the end of Friday’s session where it closed at 1198, 40 bucks.
Its competitor in semiconductors, AMD fell 4.49% after a rating downgrade by analysts at Morgan Stanley.
Eli Lilly laboratories climbed 1.88% after taking a first regulatory step with the FDA health authorities towards the authorization of a new drug against Alzheimer’s disease.
Real estate investment fund KKR soared 11.22% while cybersecurity specialist CrowdStrike gained 7.29% and site registration platform GoDaddy rose 1.94%. The three stocks will enter the broader S&P 500 index on June 24.
