(New York) The New York Stock Exchange was trading in mixed order on Monday, after a weekly gain for the three main indices, while awaiting news on inflation and especially from the Federal Reserve (Fed) this week.
The Dow Jones index gained 0.07%, the technology-dominated NASDAQ lost 0.31% and the S&P 500 fell 0.16%.
Over the week, the NASDAQ jumped 2.38%, notably thanks to Nvidia which crossed the $3,000 billion mark in market capitalization. The S&P 500 advanced 1.32% and the Dow Jones 0.29%.
On Monday, investors “will still digest the employment figures released on Friday, position themselves for inflation and the Fed’s decision on Wednesday and assimilate the new policies coming from Europe”, estimated Will Compernolle of FHN Financial.
The American Central Bank meets Tuesday and Wednesday and the market has no doubt that it will leave rates unchanged at their highest level in more than twenty years. But it must publish new forecasts and investors are watching for any indication of future rate cuts.
“The Fed meeting will be complicated by the morning publication of the CPI index. If inflation is low, everything is fine. If not, their breakfast will be ruined,” commented Chris Low of FHN Financial as well.
Analysts forecast that consumer prices rose 0.1% in May to remain at 3.4% year over year, according to MarketWatch.
Fed members must release new forecasts for inflation, growth and unemployment rates. They must also revise their rate evolution scenario, which will be particularly scrutinized by investors.
After the European elections which saw a rise in the far right in France and Germany in particular and the surprise decision of French President Emmanuel Macron to call legislative elections, “the markets are treating this political rout as a negative factor for the euro which also weighs on the value of stocks and bonds in the euro zone,” writes Carl Weinberg of High Frequency Economics.
The dollar gained 0.58% to 1.0737 dollars per euro.
On the market, the action of the AI chip designer Nvidia was trading down 0.64% at $120.37, after its division by ten at the end of Friday’s session where it had closed at $1198.40.
Its competitor in semiconductors, AMD fell 3.72% after a rating downgrade by Morgan Stanley analysts.
Member of the Dow Jones, Intel was down 1.18%.
Two thirds of the thirty Dow Jones stocks were in the red, notably Walt Disney (-0.61%), Travelers insurance (-0.73%), McDonald’s (-0.76%) and Nike (-0. 52%).
Real estate investment fund KKR soared more than 9% while cybersecurity specialist CrowdStrike gained 7.56% and site registration platform GoDaddy climbed 2.31%. The three stocks will enter the broader S&P 500 index on June 24.