(New York) The New York Stock Exchange opened higher on Monday, continuing its momentum despite a sparse macro and microeconomic calendar, against a backdrop of ongoing monetary easing.
At around 10:05 a.m., the Dow Jones was close to equilibrium (+0.01%), the NASDAQ index gained 0.27% and the broader S&P 500 index, 0.22%.
On Friday, Wall Street had caught its breath after a successful week, but the Dow Jones still managed to set a new closing record.
“Operators are not yet ready to sell, although a market with high valuations could see consolidation,” Patrick O’Hare of Briefing.com explained in a note.
For Adam Sarhan of 50 Park Investments, the New York market also benefited from the announcement of a drop in one of the rates of the Chinese central bank (PBoC), supposed to support the granting of credit and the economy.
The start of the week will be devoid of major releases, with Wall Street already looking ahead to a new estimate of second-quarter growth on Thursday and the PCE consumer price index on Friday.
As for companies, a handful of results are expected, including semiconductor specialist Micron on Wednesday and the semi-wholesale chain Costco on Thursday.
“It’s the last full week of the month and the quarter, a period that is usually favorable,” stressed Adam Sarhan.
In the bond market, rates were firm. The yield on 10-year US government bonds rose to 3.78%, compared with 3.74% at the close on Friday.
Operators are still counting on additional rate cuts of at least 0.75 percentage points in total, while members of the American central bank (Fed) are only predicting half a point.
Beyond Monday’s session, “I wouldn’t be surprised if we had a little decline, given the positive sequence we’ve just experienced,” warns Adam Sarhan.
To maintain its momentum, the New York Stock Exchange relied on a rotation movement, with participants looking for neglected or attractively valued stocks, such as Walmart (+1.08%), Chevron (+1.67%) and Visa (+0.63%).
Elsewhere on the stock market, investors were once again flocking to Intel (+2.63%), the focus of much attention. According to Bloomberg, asset manager Apollo Global Management is ready to inject up to five billion dollars into the capital of the semiconductor manufacturer.
Friday, the Wall Street Journal had reported that competitor Qualcomm had made an approach with a view to a possible acquisition of Intel.
Energy company Constellation continued its momentum from Friday (+4.46%) and the announcement of a 20-year contract with Microsoft that provides for the restart of a unit at the Three Mile Island nuclear power plant (Pennsylvania).
The news also supported the mining companies Uranium Energy Corp (+5.69%) and Cameco (+4.30%), which specialize in uranium extraction.
Tesla advanced (+3.86%) as the US government unveiled a new regulatory text on Monday that provides for a ban in the United States on technologies of Chinese and Russian origin for connected vehicles.
U.S. officials said manufacturers would need a transition period to comply with the ban and switch suppliers, setting the ban’s entry into force for physical equipment at 2029.
American manufacturers General Motors (-3.80%) and Ford (-1.24%) fell.
Meta remained on an upward trend (+2.10%), breaking records. The title of the Menlo Park (California) group jumped by almost 13% in two weeks.