(New York) The New York Stock Exchange opened slightly higher on Tuesday, somewhat relieved by the decline in oil prices and bond rates, but in a frozen position before the communication from the American central bank (Fed), later in the day.
Around 9:45 a.m. ET, the Dow Jones was up 0.30%, the NASDAQ was up 0.32% and the broader S index was up 0.32%.
At the opening, investors found “a little inspiration in the fall in bond yields and oil prices,” explained Patrick O’Hare of Briefing.com in a note.
The American benchmark variety, West Texas Intermediate (WTI) was in the red for the second session in a row, a streak it has not seen for a month.
On the bond market, the yield on 10-year US government bonds fell to 4.32%, compared to 4.35% the day before at the close. As of Tuesday, it had risen to a 15-year high of 4.3667%.
But the future of the session lies elsewhere. “It’s all going to depend, of course, on what the Fed says. Not what it does, but what it says,” warned Peter Cardillo of Spartan Capital about the institution’s communication, expected at 12 p.m. (Eastern time).
Operators are counting, almost unanimously, on a status quo for the key rate, but are waiting, with anxiety, to learn the Fed’s updated forecasts in terms of growth, inflation and monetary trajectory.
“If they indicate that they are not done with rate hikes, this should cause selling and put the market in a bad mood,” anticipates Peter Cardillo.
After nearly two years of drought, major IPOs follow one another on Wall Street. The day after the arrival of the grocery delivery platform Instacart, it is the turn of digital marketing specialist Klaviyo to take the plunge on Tuesday.
The latter set its IPO price on Tuesday evening at $30 per share, significantly above the range it had initially chosen, or between $25 and $27, a sign of investor appetite.
The operation values Klaviyo at $7.5 billion, and around $9.3 billion if you count the securities and stock options granted to employees and managers.
The IPO market remains fragile, as demonstrated by the backlash that Arm (-2.00%) and Instacart (-5.14%) experienced after their initial listings. The first on Tuesday headed for a fourth negative session in a row after its initial jump, and lost some $10 billion in market valuation.
The social network Pinterest was sought after (5.51%), the day after an investor day which saw the San Francisco group anticipate an acceleration in its growth and an improvement in its margins.
The food company General Mills (-1.18%) did not benefit from better than expected profit and turnover for its first financial quarter 2024 (from the end of May to the end of August), in particular thanks to increases in price. The owner of Cheerios cereal and Häagen-Dazs ice cream confirmed its guidance for its full fiscal year.
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