Around 4:15 p.m., the Dow Jones took 0.93%, the NASDAQ index increased by 1.65%and the enlargement index S&P 500 won 1.17%.
The New York Stock Exchange is evolving in the green on Monday, seeking to recover after Friday decrease thanks to the hope of a faster than anticipated the rates of the Federal Reserve (FED) after dating figures.
Around 4:15 p.m., the Dow Jones took 0.93%, the NASDAQ index increased by 1.65%and the enlarged index S&P 500 earned 1.17%.
Patrick O’Hare, from Briefing.com, notes “a cheap purchasing effort” supported, among other things, “by a certain optimism as to the possibility that the Fed soon reduces its guiding rates”.
A large majority of analysts are now expecting a quarter of a percentage point of the rates of the American central bank at its next monetary policy meeting (FOMC) in September, according to the CME monitoring tool.
These forecasts are based on a labor market report in the United States, published on Friday, worse than expected, with in particular a sharp decline in job creations, at more seen levels from the Cavid-19 pandemic.
“This optimism (as for a drop in rate, Editor’s note) had not taken over Friday on the market,” recalls Patrick O’Hare, the new figures on employment then led investors to “wonder if the economy and the prospects for profits were as good as it was thought before”.
“There are still a lot of uncertainties concerning customs duties, employment and the question of whether it implies a recession,” adds CFRA to AFP Sam Stovall.
Donald Trump’s new customs duties which should come into force for the most part on Thursday are “almost final” and should not be the subject of negotiations immediately, said the American representative to trade Jamieson Greer in an interview broadcast on Sunday on the CBS channel.
The products of the European Union (EU), Japan or South Korea will be surcharged up to 15%, those of the United Kingdom at 10%. Indonesia is 19%, Vietnam and Taiwan undergo additional customs duties of 20%.
“The real question will concern China and Canada”, two of the main trade partners in the United States, “said Sam Stovall.
“They must” each come to a commercial compromise with Washington “so that investors have the feeling that the tariff storm has come to an end,” said the analyst.
On the bond market, the yield of the American loan at ten years, was stable compared to the end on Friday, at 4.22%.
In terms of indicators, market players are mainly waiting for the publication on Tuesday of the American trade balance. They will also pay special attention to the vacant position left within the Fed monetary policy committee after the resignation of a governor.
Donald Trump said “very happy” on Friday to be able to offer a replacement.
On the table of values, the automaker Tesla (-1.83% to 311.56 dollars) fell after granting its boss Elon Musk 96 million shares for a value of around 29 billion dollars. Mr. Musk’s enormous remuneration plan is always the subject of a legal battle.
The Boeing aircraft manufacturer (-1.41% to 218.76 dollars) fell somewhat on the first day of a strike movement bringing together some 3,200 workers who assemble its fighter planes in the United States.
The union of these workers in Missouri and Illinois (center) factories denounces “promises in the air” after rejection, the day before, of a revised contract proposal.
The Chinese giant of Baidu search engines (+1.37% to 87.31 dollars) benefited from the announcement of the launch of its Robotaxis on the American carpooling application Lyft in Germany and Great Britain in 2026, subject to regulatory approval.