(New York) The New York Stock Exchange rose on Tuesday continuing its momentum, reassured by the slowdown in US inflation which confirms the idea that the Fed is not expected to raise rates on Wednesday.
The Dow Jones advanced 0.43% to 34,212.12 points, the tech-heavy NASDAQ gained 0.83% to 13,573.32 points, and the S
The CPI consumer price index in the United States slowed in May to 4% year on year from 4.9% in April, the lowest now in more than two years as analysts expected.
Over one month, the rise in consumer prices was 0.1% against 0.4% in April, a deceleration mainly due to the drop in energy prices. “That’s a decent inflation number, nothing more,” summarized Steve Sosnick of Interactive Brokers.
On the downside, underlying inflation (excluding food and energy prices) remained high at 5.3% over one year and 0.4% over the month.
The publication of this index comes the day before a decision by the American central bank (Fed) on interest rates. For the first time in more than a year, it should stop raising them, the markets calculate.
But investors will above all be watching the Fed’s intentions for the coming months through its new projections and the press conference of its chairman Jerome Powell.
Paul Ashworth of Capital Economics said that with underlying inflation “still elevated, the Fed should signal tomorrow that it is inclined to raise rates at the next meeting in late July.”
On the bond market, yields had a first easing movement before rising again. Ten-year rates rose to 3.81% from 3.73% the day before and two-year rates to 4.66% from 4.57% around 4:30 p.m. (Eastern time).
On the stock market, software giant Oracle ignited early in the session (4.33% post-open) after announcing better-than-expected Q4 results. But the improvement fizzled, the title ending stable (0.21%).
Apple’s stock fell a little (-0.26%) after hitting a new record the day before at $183.79, which brought its capitalization close to $3,000 billion.
The graphics card specialist Nvidia has once again crossed the bar of 1,000 billion dollars in stock market valuation. Its stock rose 3.90% to $410.22.
The momentum has also once again spread outside of tech. Thus, travel stocks in particular had the wind in their sails.
Airline UAL gained 3.66% as a pay deal with pilots was close to being signed, according to reports from Bloomberg News. Delta, Southwest advanced more than 3% as well.
Cruise passengers have also benefited. Carnival (4.21% to $15.34) hit a year high, as did Norwegian Cruise (5.76%) and Royal Caribbean (2.39%). These stocks, however, remain well below their pre-pandemic level.
“So far this bullish movement has remained very narrow, driven by only a few technology stocks. But now investors are looking beyond those values,” the Interactive Broker analyst commented.
Highly volatile GameStop stock soared 10.91% as new chairman Ryan Cohen acquired $10 million worth of titles from video game stores. Ryan Cohen, who already owns 12% of GameStop, bought these approximately 440,000 titles between $22.25 and $22.90, according to an SEC document. The stock closed at $26.95.
Gains in the energy and base metals sectors helped the Toronto Stock Exchange close higher late Tuesday morning as the Canadian dollar climbed above 75 cents US. Major U.S. equity indices also advanced modestly ahead of the U.S. Federal Reserve’s interest rate decision, due tomorrow.
The composite index S
In the currency market, the Canadian dollar traded at an average rate of 75.13 US cents, up from 74.82 US cents on Monday.
