Around 4 p.m., the Dow Jones posted an advance of 0.43%, as did the S&P 500, while the Nasdaq gained 0.29%.
The New York Stock Exchange moved cautiously up slightly on Wednesday pending the decision on interest rates from the US central bank (Fed).
Around 3:00 p.m. GMT, the Dow Jones index advanced by 0.43%, as did the S&P 500, while the technology-dominated Nasdaq gained 0.29%.
The day before, the indices had concluded on the rise after good data on US inflation, the Dow Jones having gained 0.30% to 34,108.64 points, the Nasdaq 1.01% to 11,256.81 points and the S&P 500 having rose by 0.73% to 4,019.65 points.
“Trading is restricted and choppy as caution is warranted ahead of the Fed’s monetary policy decision this afternoon,” summed up Schwab analysts.
Weaker than expected inflation in the United States at 7.1% year on year against 7.7% a month earlier, published on Tuesday, persuaded investors that the Fed will stick to a rate hike on federal funds by half a percentage point when it makes its decision at 7:00 p.m. GMT.
The Federal Reserve’s Monetary Committee will have raised rates seven times in a row this year to curb inflation, which remains high. Four times, the Fed had to tighten the monetary screw by three-quarters of a percentage point, unusual increases.
Market operators will also focus on the new economic forecasts from the central bank, which will indicate in particular the final level of overnight rates envisaged by the members of the Committee.
In addition, at 7:30 p.m. GMT, Jerome Powell, the president of the central bank, will give a press conference where investors will watch for clues on what the Fed will do in 2023.
“November’s price index is synonymous with a second month of good news on the inflation side and no doubt, it will be the same in December,” said Art Hogan of B. Riley Wealth Management. “While it is not yet clear whether the price of services is slowing significantly, this series of weaker inflation indicators, should grow the cohort of those inside and outside the Fed calls for an upcoming break in rate hikes,” assured the analyst.
Most of the S&P sectors were in the green except for communication services. That of energy led the rise (+1%) in the wake of the increase in crude oil prices.
Bond yields on ten-year Treasury bills, down sharply the day before, remained on the downward slope at 3.49% against 3.50% on Tuesday.
On the side, the airline Delta Airlines gained 2.58% after announcing that its turnover in 2023 could increase by 15% or 20% signaling “robust demand” for travel.
After a sharp rise on Tuesday (+7.32%), the specialist in electronic signature contracts DocuSign continued to attract investors (+3.19% to 59.88 dollars). The firm announced a better result than expected in the third quarter.
The vaccine manufacturer Moderna (+1.53% to 200 dollars) continued to benefit from the positive preliminary results of its messenger RNA vaccine against skin cancer in association with Merck (+1.01%). On Tuesday the title of Moderna had already jumped by almost 20%.
Tesla continued to give ground (-1.19% to 159 dollars), the action of the manufacturer of electric vehicles falling to the lowest since November 2020.