(New York) The New York Stock Exchange started the last session of the week with a slight rebound on Friday, digesting the remarks the day before by Fed President Jerome Powell on monetary policy.
The Dow Jones index advanced 0.33%, the tech-heavy NASDAQ rose 0.71% and the S
On Thursday the indices had fallen, weighed down by the words of the head of the Fed indicating that a rate increase was still on the table if inflation does not slow down.
After eight days of progress, the expanded index S
“We will not hesitate” to further raise key rates “if necessary” in the face of high inflation, the president of the American Federal Reserve warned on Thursday during a conference at the IMF.
“He said the central bank wasn’t sure it had done enough to continue to curb inflation,” summarized Art Hogan of B. Riley Wealth Management.
Mr Powell acknowledged, however, that monetary policy was currently “restrictive”, so likely to be effective in reducing inflation.
Bond rates, which had climbed on Thursday in reaction to these comments, eased again on Friday to 4.57% compared to 4.62% the day before for ten-year yields.
“The easing of yields today is a key source of support for the stock market,” commented Patrick O’Hare of Briefing.com.
Before the market opened, the White House confirmed that President Joe Biden will meet with his Chinese counterpart Xi Jinping on Wednesday in San Francisco on the sidelines of the Asia Pacific summit, Apec.
Indices reacted positively to the news in futures trading before the bell.
During this rare summit meeting for the world’s two largest economies, the two men will discuss trade disputes, the situation in Taiwan and international issues.
Treasury Secretary Janet Yellen, for her part, has been holding bilateral meetings since Thursday with He Lifeng, the Chinese vice-premier.
“We seek a healthy economic relationship with China that benefits both countries over time,” Yellen stressed Thursday.
Among the indicators, consumer confidence for November from the University of Michigan was expected.
The session promised to be poorly attended as federal services observe in advance the November 11 public holiday which falls on a Saturday this year.
On the stock market, the car rental company with driver Lyft rebounded by almost 5% after being sanctioned the day before despite announcing better than expected results. Investors focused on the comparison with rival Uber.
The industry leader showed a 31% year-over-year increase in bookings compared to 15% for Lyft.
Streaming advertising company Trade Desk fell 21% after issuing weak sales forecasts blamed on economic conditions.
Wynn Resorts casinos fell 9.15% as the group signed an agreement with the hotel bartenders and cooks’ union, the Culinary Union, on salary conditions to avoid a strike.
