(New York) The New York Stock Exchange started in the green on Monday after two consecutive weekly losses on the eve of a decisive week for American monetary policy.
The Dow Jones index gained 0.37%, the technology-dominated NASDAQ jumped 1.55% and the S&P 500 rose 1.05% around 10:30 a.m. Eastern time.
Over the past week, the Dow Jones and the S&P 500 lost 0.1% and the NASDAQ 0.7% while stubborn signs of inflation pushed bond rates up.
“The market lost some momentum last week as bond yields rose following higher-than-expected inflation data,” noted Patrick O’Hare of Briefing.com. “But it seems to have regained its dynamism before an important week both for artificial intelligence and for monetary policy,” added the analyst.
Technology stocks thus regained strength, exhilarated by the opening of the Nvidia developers conference in Santa Clara, California. The designer of superpowerful chips, celebrated on Wall Street, could announce a new generation of processors for artificial intelligence.
Nvidia shares jumped 4% around 10:20 a.m. (Eastern time), crossing the $900 mark again.
Alphabet, Google’s parent company, soared by almost 7%, while Apple is reportedly in discussions to integrate Google’s AI program, called Gemini, on its iPhones. Apple gained 2.68%.
Tesla shares, which have lost more than 30% since the start of the year, advanced 2% while Elon Musk indicated in a message on X (formerly Twitter) that the prices of the Model Y would soon increase of 1000 dollars.
On the macroeconomic level, “the week will be crucial for central banks which oversee some 40% of global GDP,” summarized Art Hogan of B. Riley Wealth Management.
The analyst first refers to the Bank of Japan (BOJ) monetary meeting on Tuesday. “There is intense speculation that the BOJ will raise rates for the first time since 2007, ending the world’s last negative rates,” Hogan said.
Attention will then focus on the American Federal Reserve (Fed) on Wednesday. “The market knows that there will be no change” on the rates, but, among the projections which will be published by the central bank, “the market will focus on the rate evolution tables”, underlined Patrick O ‘Hare.
Investors are forecasting three interest rate cuts this year in the United States, with the first coming in June.
The central banks of Australia, Switzerland and England will also hold monetary policy meetings this week.
Contrasting data came from China. The economy had a mixed start to 2024 with sluggish household consumption but an acceleration in investment and activity in factories, according to official figures published on Monday.
On the bond market, ten-year rates were stable at 4.31% compared to 4.30% on Friday.