(New York) The New York Stock Exchange continued its year-end momentum Tuesday, propelling the Dow Jones to a new record high, while the broader S
The Dow Jones Index gained 0.68%, closing at 37,557.92 points, its fifth record high in a row. The tech-heavy NASDAQ rose 0.66%, ending at 15,003.22 points.
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“It looks like we’re finally going to have that end-of-year bull market we were hoping for,” commented Jack Ablin, Cresset analyst.
The market is celebrating “the combination of slower growth coupled with lower inflation, which was recognized by Fed Chairman Jerome Powell who raised the possibility of rate cuts later,” this analyst explained.
The market continued to ignore the comments of representatives of the American central bank (Fed) trying to return to the idea that the members of this institution are already discussing a schedule of rate cuts, as had been suggested by the Fed boss last week.
“We hear Fed governors trying to dampen the market’s enthusiasm, but investors don’t want to listen to them,” continued Jack Ablin.
“It’s an emotionally charged market and investors are enthusiastic,” he assured.
The bond market remained calm, with the yield on ten-year Treasury bills standing at 3.93%, as on the previous day.
Published on Tuesday, real estate data on new housing construction starts in the United States surprised by their good performance in November (14.8% over one month).
They provided a new argument in favor of the hypothesis of a soft landing of the economy.
But investors are especially awaiting the publication on Friday of the PCE inflation index for November, the Fed’s favorite barometer for price rises.
According to B. Riley Wealth Management analyst Art Hogan, “if the core PCE number comes close to expectations,” which is 0.2% for the month of November, “the buzz around the rate cut will interest (from the Fed, editor’s note) could continue” and with that, the momentum of the stock market.
On the stock market, aircraft manufacturer Boeing gained 1.19% after Lufthansa ordered 40 737-8 MAX aircraft, its first order from Boeing in almost 30 years. Lufthansa has also ordered 40 Airbus A220-300s.
After favorable analyst ratings, shares of solar energy equipment company Sunnova gained 14.96%.
That of the pharmaceutical group Kenvue, manufacturer of Tylenol, climbed 2.19%. The laboratory was sought after a favorable court decision. A judge ruled that hundreds of complaints against him did not present sufficient evidence that taking acetaminophen – a component of the painkiller Tylenol – posed risks to a developing fetus.
Arvinas, a laboratory specializing in cancer treatments, soared 6.89%, also benefiting from momentum that affected the pharmaceutical sector. Bristol-Myers Squibb gained 1.50%, Amgen 1.07%.
The steelmaker US Steel, which had jumped 26% the day before after the announcement of a takeover agreement by the Japanese Nippon Steel Corporation for around $14.1 billion, fell 2.44% to $48.38 . The price proposed by the buyer is $55 per share.