(New York) The New York Stock Exchange continued its year-end momentum on Tuesday, propelling the Dow Jones to a new record, while the broader S&P 500 index, the most representative of the market, approached its historic summit.
The Dow Jones index gained 0.68%, closing at 37,557.92 points, its fifth record in a row. The technology-dominated NASDAQ rose 0.66%, ending at 15,003.22 points.
The S&P 500 advanced 0.59%, finishing at 4768.37 points, less than twenty points below its last all-time high, reached in January 2022.
“It looks like we’re finally going to have that end-of-year bull market that we were hoping for,” commented Jack Ablin, Cresset analyst.
The market is celebrating “the combination of slower growth combined with lower inflation, which was recognized by Fed Chairman Jerome Powell who raised the possibility of rate cuts later,” this analyst explained.
The market continued to ignore the comments of representatives of the American central bank (Fed) trying to return to the idea that the members of this institution are already discussing a schedule of rate cuts, as had been suggested by the Fed boss last week.
“We hear Fed governors trying to dampen the market’s enthusiasm, but investors don’t want to listen to them,” continued Jack Ablin.
“It’s an emotionally charged market and investors are enthusiastic,” he said.
The bond market remained calm, with the yield on ten-year Treasury bonds standing at 3.93%, as on the previous day.
Published on Tuesday, real estate data on new housing construction starts in the United States surprised by their good performance in November (+14.8% over one month).
They provided a new argument in favor of the hypothesis of a soft landing for the economy.
But investors are especially awaiting the publication on Friday of the PCE inflation index for November, the Fed’s favorite barometer for price rises.
According to Art Hogan, analyst at B. Riley Wealth Management, “if the base PCE figure comes close to expectations”, which are +0.2% for the month of November, “the buzz around the drop in interest rates “interest (from the Fed, editor’s note) could continue” and with that, the momentum of the stock market.
On the stock market, the aircraft manufacturer Boeing gained 1.19% after the order for 40 737-8 MAX aircraft by the company Lufthansa, its first order from Boeing in almost 30 years. Lufthansa has also ordered 40 Airbus A220-300s.
After favorable analyst ratings, the stock of solar energy equipment company Sunnova gained 14.96%.
That of the Kenvue pharmaceutical group, manufacturer of Tylenol, climbed 2.19%. The laboratory was sought after a favorable court decision. A judge ruled that hundreds of complaints against him did not present sufficient evidence that taking acetaminophen – a component of the painkiller Tylenol – posed risks to a developing fetus.
Arvinas, a laboratory specializing in cancer treatments, soared 6.89%, also benefiting from momentum that affected the pharmaceutical sector. Bristol-Myers Squibb gained 1.50%, Amgen +1.07%.
The steelmaker US Steel, which had jumped 26% the day before after the announcement of a takeover agreement by the Japanese Nippon Steel Corporation for around $14.1 billion, lost 2.44% to $48.38. . The price proposed by the buyer is $55 per share.