Wall Street opens up after week focused on rates

Wall Street opens up after week focused on rates


New York (AFP)

Wall Street opened higher on Friday for the last session of a solid week, boosted by comments from the boss of the US Central Bank (Fed) in the direction of a future rate cut.

Its flagship index, the Dow Jones Industrial Average, took 0.49%, at 27,220.57 points around 13:55 GMT.

The Nasdaq index, with strong technological coloration, gained 0.28%, at 8,219.31 points.

The broad S & P 500 index rose 0.19% to 3,005.71 points.

The day before, the Dow Jones index had finished for the first time above 27,000 points, to 27,088.08 points (+ 0.85%) and the S & P 500 had also broken a record with 2,999.91 points (+0 , 23%), these two indices being supported already by the prospect of an accommodating central bank. The Nasdaq had lost 0.08%.

The three main Wall Street indexes were moving towards a week of growth of between 0.4% and 1.1%, but especially to new records for each of them.

"The two main things to remember are that there is no longer any doubt that the Fed will lower rates on July 31, and secondly that there is a strong logic behind this decision, "summarized Chris Low of FTN Financial.

At three weeks of a meeting of the American institution, market participants agree that the speech of its president Jerome Powell in front of the Congress this week has gathered all the ingredients of a rate cut. interest to come.

Jerome Powell said that the various trade fronts opened by the Trump administration around the world could "have an impact on the US economy" and created a "confidence shock".

Interest rate cuts make it easier for the various players in the economy - households, businesses and investors - to have access to capital. Thanks to the low interest rate policy since the post-crisis era, the stock market has been one of the main beneficiaries of the abundance of capital.

In the bond market, the interest rate on US 10-year debt rose to 2.129% against 2.11% the day before closing.

© 2019 AFP

ref: france24

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