NY Stock Exchange Opens Higher Despite US Inflation; Investors Bet on Fed Rate Cut

2024-03-12 13:39:30
The New York Stock Exchange opened higher on Tuesday, as investors continued to bet on an upcoming rate cut from the Federal Reserve (Fed) despite higher-than-expected US inflation in February. In early trading, the Dow Jones index .DJI gained 128.18 points, or 0.33%, to 38,897.84 points and the broader Standard & Poor’s 500 .SPX rose 0.46% to 5,141. 48 points. The Nasdaq Composite .IXIC gained 0.65%, or 103.90 points, to 16,123.17. A Labor Department report released shortly before the opening showed more persistent than expected inflation in February, but investors continue to bet that monetary easing from the Fed is nearing. “We’re on track for a rate cut in June and I don’t think there’s any change on that yet,” said Robert Pavlik, portfolio manager at Dakota Wealth, adding he still expects to three rate cuts during the year. The consumer price index (CPI) increased by 0.4% month-on-month in February, after 0.3% in January, while on an annual basis, prices increased by 3.2%, compared to expectations of 3.1%. Excluding the volatile components of food and energy, the so-called “core” index increased by 0.4% over one month in February, against 0.3% expected. Over one year, it also increased more than expected, by 3.8%, against an estimate of 3.7% and after an increase of 3.9% in January. “The year-over-year core inflation rate continues to decline, which means things are improving, which is good news for the Federal Reserve. This is why markets seem to be reacting well,” said Eugenio Aleman, economist at Raymond James. In values, the database specialist Oracle ORCL.N rose 11.3% after exceeding expectations Monday evening with its quarterly profit and promising a joint announcement during the week with Nvidia NVDA.O, which in turn takes 1 .9%. Boeing BA.N lost 2.9% after the New York Times reported that the audit of the 737 MAX production process conducted by the United States Civil Aviation Administration (FAA) following an incident during of an Alaska Airlines ALK.N flight in January revealed problems in 33 out of 89 tests. * For the values ​​to follow, click on nL5N3FQ31L (Written by Diana Mandiá, edited by Blandine Hénault)
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