Modestly up, Wall Street regains confidence before the end of the month

The New York Stock Exchange closed with modest gains on Tuesday, awaiting US inflation data later in the week and after a strong November so far.

The Dow Jones index advanced 0.24% to 35,416.98 points, the technology-dominated Nasdaq rose 0.29% to 14,281.76 points and the broader S&P 500 index gained 0.10%. at 4,554.89 points.

The relative pause in the indices observed since Monday follows a month of solid progress.

Stocks, which had started the session timidly on Tuesday, moved into the green during the day after statements by a governor of the American central bank (Fed) seeming to suggest that the cycle of interest rate increases of this institution was well and truly finished.

Christopher Waller said, during a conference in Washington, “encouraged by the first signs of moderation in economic activity in the fourth quarter.”

October’s economic data “are consistent with the type of moderation in demand and easing of price pressure that will help bring inflation back to 2%,” added this Fed governor, who is optimistic about the slowdown in inflation in the United States.

Immediately, ten-year bond yields eased further, falling to 4.32%, compared to 4.38% the day before.

This supported stocks somewhat in the green for the remainder of the trading session. The dollar, on the other hand, fell below the symbolic threshold of 1.10 dollars per euro during the session.

“The market is even more convinced that the Fed is probably finished raising rates”, particularly with the words of Christopher Waller “who said he would vote again for a pause” at the next monetary meeting in mid-December, said Peter Cardillo, analyst at Spartan Capital, told AFP.

“This gives the market room to move forward. And if we have good news on Thursday with the PCE price index, this could trigger a new upward movement,” assured the analyst.

The PCE inflation index, the Fed’s preferred measure for assessing price developments in the United States, will be published on Thursday for October, as will the consumer spending of American households for the same month.

On the market, several retail brands had the wind in their sails on Tuesday after the publication of sales results from the Thanksgiving long weekend with its Black Friday and Cyber Monday promotional days.

This shopping period saw a new attendance record with 200 million buyers during these five days, in person and/or online, four million more than last year, according to the National Retail Federation .

Online sales on Cyber Monday alone reached $12.4 billion, up 9.6% year-over-year, according to a survey by Adobe Analytics.

This trend in consumption, confirmed by a small rebound in consumer confidence according to the Conference Board barometer in November (to 102 points compared to 99.1), benefited Tuesday Walmart (+1.24%), Home Depot, the DIY giant (+0.80%) or Best Buy, the electronic equipment chain (+2.35%).

Boeing (+1.40% to $222.37) supported the Dow Jones, the action climbing after a favorable opinion from analysts.

Analyst notes also favored plastic shoes Crocs (+5.13%) as well as deferred payment specialist Affirm (+11.51%), two beneficiaries of the Black Friday buying frenzy.

Tesla shares gained 4.51% to $246.72, after an increase in weekly registrations of its vehicles in China.

The electric vehicle manufacturer led by Elon Musk will also unveil the Cybertruck, its electric all-terrain vehicle, on Thursday.