(New York) The New York Stock Exchange moved higher on Monday seeking to continue the recovery of last weekend sparked by a slowdown in American employment which once again suggests a soft landing for the economy.
The Dow Jones index gained 0.35%, the technology-dominated NASDAQ advanced 0.50% and the S&P 500 climbed 0.58% around 10:20 a.m. Eastern time.
More details to come.
“The stock market is relatively calm this morning after ending the week with a more positive sentiment on the financial outlook for companies and the evolution of interest rates,” said Patrick O’Hare of Briefing.com.
Stocks concluded enthusiastically on Friday as job creation slowed in April to 175,000 versus 240,000 expected. This seems to show that the Fed’s monetary policy with its high rates is succeeding in slowing down activity, which is favorable to a decline in inflation.
The Dow Jones gained 1.18% on Friday to 38,675.68 points.
The NASDAQ index rose 1.99% to 16,156.33 points and the S&P 500 advanced 1.26% to 5,127.79 points.
“The jobs report couldn’t be better,” says Bob Schwartz of Oxford Economics. “Moderating job growth, more flexible labor market conditions and slower wage gains are exactly what Dr. Fed ordered to bring inflation under control,” the economist added.
The Fed’s communication on Wednesday had already reassured about the evolution of inflation, the president of the institution, Jerome Powell, brushing aside the possibility of a rate increase.
The bond market remained calm. Two-year rates, the most sensitive to the Fed’s overnight rates, stood at 4.80% compared to 4.81% the day before.
Few macroeconomic indicators are on the menu for the week which is also free from the avalanche of results from mega-companies.
Among the big names yet to disclose their quarterly accounts are Disney (+1.72% around 10:10 a.m. Eastern time) on Tuesday and Uber (+2.60%) on Wednesday.
Other companies will be watched by investors such as the information company Palantir (+7%) from Monday, but also Electronic Arts (+0.43%) and the electrical manufacturer Rivian (+1.34%) on Tuesday.
Several members of the Federal Reserve are also due to speak on Monday, including the president of the New York Fed John Williams and that of the regional branch of Richmond Thomas Barkin.
On the stock market, Apple was catching its breath (-0.53% around 9:55 a.m. Eastern time) after Friday’s spectacular surge (+5.98%) which welcomed results that were less bad than expected.
Tesla stock was in demand (+3.14%) after the electric vehicle manufacturer added a new version to its Model Y, its most popular car.
Stocks of microprocessor and component makers were driving technology momentum, with Nvidia gaining 3%, AMD +2.97% and Arm Holdings +4.70%.
The stocks of oil groups advanced like Chevron (+1.53%) or Exxon (+1.49%).
Over the weekend, investor Warren Buffett held the general meeting of shareholders of the Berkshire Hataway fund. The opportunity for the 93-year-old multi-billionaire to express his distrust of artificial intelligence “which can do a lot of good, but also a lot of harm”.