(New York) The New York Stock Exchange opened on a mixed note on Thursday, attempting to climb even higher after a series of records on the strength of indicators that confirm the deceleration of inflation and the job market .
Around 9:55 a.m. ET, the Dow Jones was down 0.61%, the NASDAQ index was down 0.67% and the broader S index was down 0.67%.
Before the opening, the New York market took note of two indicators deemed satisfactory.
Producer prices (PPI index) fell by 0.2% in May compared to April, while economists predicted an increase of 0.1%.
“This lower-than-expected figure will support the rebellion of bond traders against the Fed’s monetary policy committee’s projections of only one rate cut this year,” Rubeela Farooqi of High Frequency Economics commented in a note.
On Wednesday, the CPI consumer price index also came out below economists’ estimates, showing zero inflation in May, compared to April.
“The fact that neither the PPI nor the CPI came in above expectations plays into stocks because it means the Fed has room to cut rates if it wants,” according to Adam Sarhan of 50 Park Investments.
Investors also welcomed the increase in new unemployment claims, to 242,000 last week compared to 225,000 expected, the highest in ten months.
“This will be interpreted as a lull in the labor market, which is in line with what the Fed wants to see before reducing its rates,” reacted, in a note, Patrik O’Hare, of Briefing.com.
These two indicators thus put pressure on bond rates, which were already disrupted on Wednesday.
The yield on 10-year U.S. government bonds fell to 4.23%, the lowest in two and a half months.
Operators well digested the cautious speech from the Fed and its president, Jerome Powell, on Wednesday, who warned that if inflation slowed, it remained too high to consider monetary easing in the short term.
“Can the stock market continue to rise? Yes, because he is disconnected from the Fed now,” argues Adam Sarhan. “It no longer relies on hopes of a Fed rate cut, but on earnings growth and the economy remaining strong. »
On the market, Apple recovered (0.63%), once again, its throne as the world’s largest capitalization, ahead of Microsoft (0.20%), after a brief foray the day before.
Nvidia was on their heels (3.41%), still sought after for its role in the development of so-called generative artificial intelligence (AI).
Tesla soared (7.04%) after Elon Musk affirmed, on passes to be approved by a majority of shareholders.
Semiconductor designer Broadcom was also in the clouds (14.95%), after publishing results above expectations and raising its forecasts for its entire delayed financial year (ending at the end of October). Revenues from artificial intelligence now reach a quarter of the total.
The old economy wasn’t invited to the party, which penalized the Dow Jones. The health sector was particularly targeted, with the insurer UnitedHealth (-1.45%) and the laboratory Amgen (-1.76%) falling clearly into the red.
