(New York) Made optimistic about the path of interest rates after the deceleration of US inflation, the New York Stock Exchange closed sharply higher on Wednesday, its best session of the month, led by technology stocks.
The NASDAQ, home to many interest-rate sensitive technology companies, jumped 1.15% to 13,918.96 points, the Dow Jones gained 0.25% to 34,347.43 points and the index expanded S
The NASDAQ like the S
Inflation marked time in June in the United States at 3% year on year, against 4% a month before and 3.1% expected, according to the CPI index. Over one month, it advanced by 0.2% while analysts expected 0.3%.
So-called core inflation (excluding food and energy prices) fell to 4.8% from 5.3%, which is still far from the 2% target of the American central bank (Fed), but could reflect “a downward trend that will accelerate by the end of the year,” reacted Andrew Hunter of Capital Economics.
The U.S. central bank (Fed) is expected to raise interest rates another quarter point on July 26 to lead them to between 5.25% and 5.50%, according to futures product projections. But the likelihood of another rise in September waned markedly on Wednesday.
“The outlook for inflation is weak enough to suggest that the July rate hike will be the last in the cycle,” assured Karl Haeling of LBBW.
“The market is showing some optimism for a soft landing, neither too hot nor too cold. It looks like an economy of blonde curls,” he added, using the phrase markets to describe an ideal state of activity.
Bond yields reacted strongly to this softening of the rise in prices, easing sharply to 4.73% against 4.87% the day before for two-year notes and to 3.85% against 3.97% for those at ten years.
The dollar skidded to a 16-month low against the euro at $1.1137 to the euro, falling 1.16% around 3:35 p.m. EST.
“The dollar crashed and that helped commodities and the equity market,” Mr. Haeling commented further, especially given the upward trajectory of the S
Another favorable data, the Fed published its Beige Book, the last economic report before its monetary meeting at the end of July. This barometer shows that growth is holding up, but that pressure on prices is weakening and that the labor market is easing, which is a good point for inflation.
“Labour market conditions continue to ease gradually, which is helping to moderate wage growth, which will also help lower inflation,” said Michael Pearce, an economist at Oxford Economics.
On the side, while several quarterly banking results are expected this week, certain bank securities have been sought after, such as Goldman Sachs (1.72%) or Citigroup (1.83%).
The big names in technology also had the wind in their sails from Amazon (1.57%) to Meta (3.70%).
Microsoft savored (1.42%) its victory the day before before a judge against the FTC competition authority which had protested against the takeover of the video game manufacturer Activision (-1.09%).
Nvidia, the darling of investors enthusiastic about the artificial intelligence sector, jumped 3.53% to $439.02.
The online car seller Carvana, however in difficulty, has put the turbo (9.22%) continuing its comeback for a month.
But it was Domino’s Pizza that whetted investors’ appetites the most, soaring more than 11% after announcing a deal with Uber, which will post its menus on its meal delivery app.
The Toronto Stock Exchange closed Wednesday with a gain of nearly 200 points, supported by broad-based gains across most of its sectors, particularly utilities and base metals, while major U.S. indexes advanced. Also.
The composite index S
In New York, the Dow Jones industrial average gained 86.01 points to 34,347.43 points, while the broader S index
In the currency market, the Canadian dollar traded at an average rate of 75.83 US cents, up from 75.41 US cents on Tuesday.
On the New York Commodities Exchange, crude oil rose 92 cents US to US$75.75 per barrel, while natural gas fell 10 cents US to US$2.63 per million. BTUs.
The price of gold jumped US$24.60 to US$1,961.70 per ounce and that of copper rose US9 cents to US$3.85 per pound.
