PARIS, June 13 (Reuters) – The New York Stock Exchange opened in mixed order on Thursday, the positive trend being supported by an inflation indicator in the United States considered reassuring while the American Federal Reserve (Fed) lowered its rates on Wednesday. projections of reduction in key rates.
In early trading, the Dow Jones index lost 116.55 points, or 0.30%, to 38,595.66 points. The broader Standard & Poor’s 500 rose 0.27% to 5,435.74 points.
The Nasdaq Composite takes 0.66%, or 115.34 points, to 17,723.779.
An hour before Wall Street opened, the US Department of Labor reported that producer prices (PPI) in the country contracted 0.2% month-on-month and slowed to 2.2% in annual rhythm in May. These two pieces of data, weaker than expected, have slightly revived hopes of a rate cut by the Fed at the meeting on July 30 and 31, the probability of such a measure having increased from 8% to 10%, according to the Fedwatch barometer.
In the bond market, the yield on Treasury bills, which was rising before the publication of the PPI, turned around, now showing a decline of 2.6 basis points, to 4.2752%, against 4.31% previously.
The narrow fluctuations in the bond market, however, demonstrate the great caution of market operators as the Fed decided on Wednesday to leave its key rates unchanged and announced that its officials were only planning a single rate reduction of 25 points. base for this year, compared to three previously.
“The PPI is a good number (…) it confirms the Fed’s words according to which inflation has shown signs of moderation, but more signs of moderation of inflation are needed”, comments Robert Pavlik, portfolio manager at Dakota Wealth.
“But we are moving in the right direction and that points to a very likely rate cut in September,” he added.
On the stock market, the semiconductor sector (+1.76%) and new technologies (+1.47%) benefit from this perspective. Apple (+1.26%), which dethroned Microsoft (-0.13%) as the world’s largest market capitalization on Wednesday, is still sought after.
Broadcom soars 15.28% after raising its annual revenue forecast for chips intended for artificial intelligence. In its wake, Nvidia takes 3.13%.
Tesla advances 5.87% as the automaker’s shareholders approved CEO Elon Musk’s $56 billion compensation plan.
On the downside, Virgin Galactic plunged 8.01% after announcing a 1-to-20 reverse stock split.
(Written by Claude Chendjou, edited by Blandine Hénault)
