(New York) The New York Stock Exchange was trading in a mixed fashion on Monday, shortly after opening, still well-oriented by the prospect of upcoming rate cuts by the American Federal Reserve (Fed).
As of 9:55 a.m. ET, the Dow Jones Industrial Average was up 0.43%, the NASDAQ Index was down 0.23% and the broader S&P 500 Index was up 0.10%.
The Dow Jones and S&P 500 are now just a breath away from their all-time highs set in July.
Pleased by the accommodating remarks of the president of the American central bank (Fed), Jerome Powell, on Friday, who gave the signal of an upcoming rate cut, Wall Street ended sharply higher on Friday.
“The numbers continue to point to a soft landing for the economy,” Patrick O’Hare of Briefing.com said in a note. “That’s enough to push back the selling tides as traders chase bargains.”
Investors were thus interested on Monday in the small values included in the Russell 2000 index, composed exclusively of SMEs, which progressed more than the major indices (+0.55%).
Still, “the market has gone up a lot in the last three weeks and some are taking some profits,” observed Adam Sarhan of 50 Park Investments.
Semiconductors were under pressure in particular, such as Nvidia (-0.78%), AMD (-0.81%) and Intel (-0.75%).
On the bond market, the yield on 10-year US government bonds rose slightly to 3.81%, compared to 3.80% on Friday at the close.
The week looks set to be quiet on the macroeconomic front, although the PCE price index is due out on Friday, as is the University of Michigan survey on consumer sentiment.
Operators will be watching the presentation of results from semiconductor giant Nvidia on Wednesday, which should provide information on the growth of artificial intelligence.
Several publications in the mass retail sector will also provide an overview of the health of the American consumer, including the sports equipment chain Foot Locker and the ready-to-wear brands Gap and Abercrombie & Fitch.
“Even though many people are still on vacation, this week is important because how we end this month will set the scene for the end of the year,” Sarhan warned.
This is especially true since the months of September and October are traditionally bad for stocks.
Boeing fell (-0.42%) on the stock market after the announcement on Saturday that the two astronauts were transported to the International Space Station (ISS) by the spacecraft. Starliner The aircraft manufacturer would ultimately return with a device from its competitor, SpaceX.
It’s a snub for Boeing, which was counting on this inaugural crewed flight to restore the company’s reputation. Starlinerdelayed for several years. But problems with the propulsion system prompted Boeing and NASA to return the ISS module without a crew.
Oil companies ExxonMobil (+1.89%), Chevron (+1.55%) and ConocoPhillips (+2.69%) were emboldened by the sudden rise in the price of black gold, against a backdrop of tensions in the Middle East.
The Chinese e-commerce group PDD, listed in New York and majority shareholder of the low-cost ready-to-wear website Temu, plummeted (-26.61%) after reporting lower-than-expected turnover.
He warned that its growth and profitability would suffer from fierce competition in the sector, against a backdrop of slowing consumption.