(New York) The New York Stock Exchange chained a third consecutive session of increases on Friday thanks to renewed enthusiasm from investors who ended up digesting the messages of the American central bank (Fed) and hope for an ebb in inflation .
Updated yesterday at 5:02 p.m.
The Dow Jones gained 1.19%, the NASDAQ index gained 2.11%, and the broader S&P 500 index, 1.53%.
For Edward Moya, from Oanda, the market was buoyed by a return of risk appetite after several lackluster weeks.
Edward Jones’ Angelo Kourkafas sees the upturn as the end of investors’ digestion of a series of offensive statements by members of the Federal Reserve (Fed) and a new wave of rate hikes by several other banks. power stations.
“All of this commentary ended up being absorbed in both the bond market and equities,” the manager said.
The New York market also noted the slowdown in inflation in China in August as well as the downward revision by some economists of their inflation forecasts in the United States.
The “breakeven rate”, the difference between the yield of inflation-indexed bonds and that of ordinary bonds of the same maturity fell again on Friday, to its lowest level for a month and a half.
This difference is supposed to reflect the market’s opinion on the evolution of inflation.
The theme will remain central next week, with the publication on Tuesday of the CPI price index for August, which will provide information on the path of inflation a in the United States.
“There wasn’t much to take away from today’s move other than a sense that the United States is moving towards the possibility of a soft landing” for its economy, despite the sharp upturn in interest rate, according to Angelo Kourkafas.
After several wild days, bond rates stabilized. The yield on ten-year US government bonds was unchanged at 3.31%.
Risk appetite benefited cryptocurrencies, after a sluggish August, as well as sector stocks, including Coinbase (+10.66%) and Riot Blockchain (+10.72%).
This semblance of euphoria affected all the heavyweights of tech, in particular Amazon (+2.66%) and Meta (+4.37%).
The Tapestry holding company, which notably controls the ready-to-wear brands Kate Spade and Coach, was sought (+ 2.72% to 35.52 dollars) after having unveiled three-year objectives, which provide for a figure of business of 8 billion dollars in 2025, which would represent an increase of nearly 20%.
Another action at the party, that of the supermarket chain Kroger (+ 7.40% to 51.94 dollars), which published Friday a turnover and a profit higher than expectations, but also raised its objectives for the whole exercise. The group was able to count on the development of its online activity.
The specialist in electronic signature documents and contracts DocuSign rose (+10.51 to 64.04 dollars), with results that exceeded expectations.
The rebound in the prices of black gold and several metals after weeks of depression benefited oil stocks such as EOG Resources (+4.27%) or Marathon Oil (+2.89%), as well as mining Freeport-McMoRan (+5.06%) or the steelmaker US Steel (+3.83%).
The space tourism company Virgin Galactic suffered (-4.46% to 6.00 dollars) from a lowering of the recommendation of the management company Bernstein, which is concerned about postponements of deadlines for commissioning and a possible lack of liquidity.
The American arms manufacturer Smith & Wesson slipped (-6.33% to 12.58 dollars) after the announcement of a brutal contraction in its sales, which puts an end to a euphoric cycle which had lasted since the start of the pandemic and the end of the 2020 presidential campaign.
The Regeneron laboratory advanced further (+2.18% to 724.32 dollars), after a gain of nearly 19% on Thursday, stimulated by the publication of encouraging clinical results for its treatment against eye diseases, Eylea.
Toronto Stock Exchange also up
The Toronto Stock Exchange closed nearly 1.9% higher on Friday as Statistics Canada’s August job losses suggested that interest rate hikes by the Bank of Canada succeed in slowing down an overheating economy.
The Toronto floor’s S&P/TSX Composite Index jumped 360.34 points, ending the session with 19,773.34 points, thanks to a broad recovery.
In the currency market, the Canadian dollar traded at an average rate of 76.72 cents US, up from 76.24 cents US the previous day.
On the New York Commodity Exchange, crude oil prices rose US$3.25 to US$86.79 a barrel, while natural gas rose 8 cents US to US$8.00 on million BTUs.
The price of gold rose US$8.40 to US$1,728.60 an ounce and that of copper rose 4 cents US to US$3.57 per pound.