The New York Stock Exchange ended the session, the month and the half strong on Friday, rejoicing in a slowdown in inflation in the United States, while Apple closed above the bar for the first time. of the 3000 billion dollars of capitalization.
The Dow Jones index gained 0.84% to 34,407.60 points and the tech-heavy Nasdaq climbed 1.45% to 13,787.92 points, posting its best first half since 1983. The index The broader S&P 500 advanced 1.23% to 4,450.38 points, posting its best first six months of the year since 2019.
Over the month, the indices gained almost 6% for the Nasdaq and the S&P 500 and more than 4% for the Dow Jones. “The past two years have been difficult and it feels good to end this semester on a positive note. I suspect this is not the end of it,” said Tom Cahill of Ventura Wealth Management.
Inflation in May in the United States, measured by the PCE index, the preferred barometer of the American Central Bank (Fed), slowed to 3.8% over one year, against 4.3% the month before, according to new Commerce Department data released Friday. Over one month, it fell to +0.1%. Another positive indicator in the eyes of the Fed, household spending slowed its growth to +0.1% over the month, against +0.6% in April.
By raising rates, the Central Bank seeks to slow down demand, and therefore consumer prices. “Inflation came out in line with forecasts, but the trend continues to be positively downward,” commented Tom Cahill. “Granted it’s not slowing down as fast as the central bank would like, but there will be a lot of other data before the next monetary meeting,” the analyst told media.
In addition to the good news on the inflation front, consumer confidence in June improved markedly, reaching its highest level in four months. The index measuring this confidence rose 8.8% compared to May, more than expected, according to the barometer of the University of Michigan.
These data provide grist to the mill “of the doves of the Fed”, that is to say to those who are less favorable to the continuation of the increase in key rates, said Andrew Hunter of Capital Economics. According to him, at the monetary meeting at the end of July, the Fed will raise the cost of credit again, but it will be “the last time”. Taking advantage of the enthusiasm of the Nasdaq, Apple – already the most important group on the stock market – for the first time closed above the bar of 3000 billion in capitalization.
The title had to exceed 190 dollars to reach this valuation. It ended on a jump of 2.31% to 193.97 dollars, or a capitalization of 3051 billion dollars. A strong rating from Citigroup bank helped boost the stock, said Patrick O’Hare of Briefing.com. Since the beginning of the year, the title of Apple has climbed more than 50%. “It’s hard to say you’re in a bear market when a symbolic stock like Apple is hitting new highs,” Cahill said.
Elsewhere on the coast, all the big names in technology had the wind in their sails. On the processor side, Nvidia climbed 3.63% and AMD 2.40%. Meta and Amazon gained almost 2%. After disappointing results announced the day before after the close, Nike slipped 2.65% to $110.37.
US sportswear maker Nike posted a sharp drop in quarterly net profit, driven by markdowns to reduce inventory and cost increases, despite rising sales.
While the travel season is looking good, the cruise line Carnival took off (+9.73%), followed by Norwegian Cruise (+4.16%). On the bond market, yields on Treasury bills, which had tightened the day before, remained stable at 3.83% for those at ten years.
2023-07-02 09:02:29
#Inflation #United #States #slowed #year #Wall #Street #ends #months #year #strong #note
