2023-10-11 20:54:46
Traders on the New York Stock Exchange, United States
by Sinéad Carew and Shashwat Chauhan
(Archyde.com) – The New York Stock Exchange ended higher on Wednesday, after an up-and-down session, as the minutes of the latest meeting of the Federal Reserve (Fed), according to which officials of the American central bank favored caution, fueling the hypothesis of a pause in the cycle of rate increases.
The Dow Jones index rose 0.19%, or 65.57 points, to 33,804.87 points.
The broader S&P-500 gained 18.71 points, or 0.43%, to 4,376.95 points.
The Nasdaq Composite advanced 96.83 points (0.71%) to 13,659.68 points.
The volatility of the data and the revision of previous statistics have contributed to complicating the analysis of the economy, favoring the option of caution to “determine the extent of monetary tightening which could be appropriate”, it is written in the “minutes” of the Fed meeting on September 19-20, communicated in the afternoon.
This report fueled the day’s volatility on Wall Street, whose main indices recorded gains at the start of the session, before falling back ahead of the publication of the Fed’s report. They finally returned to the green.
Investors had apparently ignored data showing that producer prices in the United States rose more than expected in September, driven by rising energy costs, even though underlying inflationary pressures continued to calm down.
According to Angelo Kourkafas, strategist at Edward Jones, recent dovish comments from Fed officials and then the “minutes” of the central bank meeting had the apparent effect of reassuring investors.
The Fed’s minutes “highlight the risk of too tight a tightening,” he said, leading investors to believe there will be no further rate hikes at the meeting. of monetary policy in November.
However, he noted that the economic data expected this week would also weigh in the next decisions of the Fed, which continues to closely monitor the indicators.
The yield on ten-year US Treasury bonds was little affected by the publication of the Fed’s “minutes”, after falling during the session to a low of around two weeks while they are considered a refuge in a context of uncertainty with the conflict in the Middle East.
Before the publication of the minutes of the meeting of the American central bank, Fed Governor Michelle Bowman reiterated that it would probably need to tighten its monetary policy further. Another governor, Christopher Waller, said the Fed would assess the situation.
Investors are now awaiting data on consumer prices in the United States on Thursday, then the start of the quarterly results season on Friday.
Among the main sectors of the S&P-500, real estate and utilities, so-called defensive sectors, were the best performers, up 2% and 1.6%, respectively.
Energy fell by 1.4%, weighed down by the 3.6% fall of Exxon Mobil after the announcement of the takeover of Pioneer Natural Resources.
On the value side, the disappointing debut of Birkenstock Holding could have contributed to the mixed sentiment, as its stock plunged 12.6%.
(French version Jean Terzian)
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