Around 3:40 p.m., the Dow Jones rises by 0.60%, the Nasdaq advances 0.77%and the enlarged S&P 500 index increased by 0.64%.
The New York Stock Exchange opened on Tuesday, reassured by the latest inflation figures in July in the United States, generally in line with market expectations.
Around 1:40 pm GMT, the Dow Jones earned 0.60%, the Nasdaq index took 0.77%and the enlarged index S&P 500 increased by 0.64%.
“The stock market appreciates” the publication of the CPI inflation index, because “the figures were almost exactly in line with forecasts”, comments with AFP Steve Sosnick, of Interactive Brokers.
“In this context, any positive element is a pretext for renewed optimism, and this is what we are currently observing,” judges the analyst.
Inflation was stable in July in the United States, according to the CPI index published on Tuesday, while the markets expected an acceleration due to new customs duties.
The consumer price index increased at the same rate as in June (+2.7% over one year), contained by the drop in the cost of oil (-9.5% over one year).
Except for volatile energy and food, the index marks a clear acceleration at +3.1% over a year, which remains in line with analysts’ expectations, according to consensus published by Marketwatch.
“With this report, there is no reason” for the American central bank (Fed) to “change his mind” concerning a drop in rates, advances Mr. Sosnick.
A very large majority of analysts believe that the Fed will reduce its rates by a quarter of percentage at the end of its next monetary policy meeting in September.
The federal reserve guiding rates – which guide the cost of credit and have a strong impact on the markets – remain unchanged since December, between 4.25% and 4.50%.
According to Sam Stovall, of CFRA, “the market will very closely examine the figures for the PPI index”, inflation on the producer side, published Thursday.
On the bond market, the yield of American state loans at ten years was tied slightly, at 4.29% against 4.28% Monday at the end. At two years old, he relaxed 3.74% against 3.77% the day before.
On the commercial level, American president Donald Trump decided on Monday to extend the relaxation with Beijing on Monday, a few hours before the theoretical end of this truce between the two powers.
This decision temporarily maintains customs duties at 30% for Chinese products and 10% for American products.
According to Mr. Sosnick, investors “expected” such a break, so that did not have a great influence on the market.
On the table of values, the American company of semiconductors and Intel processors evolved in the green (+1.07% at 20.87 dollars) after a meeting between the new boss of the group, Lip-Bu Tan, and Donald Trump in the White House on Monday.
“The meeting was very interesting,” said the American president on his social social platform, also welcoming “the incredible success” and “ascent” of the Intel leader, a few days after having called for his resignation because of accusations on his links with China.
Circle, creator of USDC cryptocurrency, was gaining ground (+8.59% at 175.02 dollars) after having published a turnover greater than expectations.
The group has notably indicated to take advantage of an increased demand for its stablecoin USDC, a type of cryptocurrencies presented as stable because they are backed by traditional assets.
The Mexican Inspiration Channel Mexican Inspiration Chipotle Mexican Grill was sought (+3.04% to 42.89 dollars) after an upward revision of the evaluation of its title by the investment bank Piper Sandler.