Wall Street opens higher, helped by oil and rates, while waiting for the Fed

New York (AFP) – The New York Stock Exchange opened slightly higher on Tuesday, somewhat relieved by the decline in oil prices and bond rates, but in a frozen position before the communication from the American central bank (Fed), more late in the day.

Around 1:45 p.m. GMT, the Dow Jones gained 0.30%, the Nasdaq index gained 0.32% and the broader S&P 500 index gained 0.30%.

At the opening, investors found “a little inspiration in the fall in bond yields and oil prices”, explained Patrick O’Hare of Briefing.com in a note.

The American benchmark variety, West Texas Intermediate (WTI) was in the red for the second session in a row, a streak it has not seen for a month.

On the bond market, the yield on 10-year US government bonds fell to 4.32%, compared to 4.35% the day before at closing. On Tuesday, it rose to its highest level in 15 years, at 4.3667%.

But the future of the session lies elsewhere. “Everything will depend, of course, on what the Fed says. Not on what it does, but on what it says,” warned Peter Cardillo, of Spartan Capital, about the institution’s communication , expected at 4:00 p.m. GMT.

Operators are counting, almost unanimously, on a status quo of the key rate, but are waiting, with anxiety, to learn of the Fed’s updated forecasts in terms of growth, inflation and monetary trajectory.

“If they indicate that they are not finished with rate increases, this should cause sales and put the market in a bad mood,” anticipates Peter Cardillo.

After nearly two years of drought, major IPOs follow one another on Wall Street. The day after the arrival of the grocery delivery platform Instacart, it is the turn of digital marketing specialist Klaviyo to take the plunge on Tuesday.

The latter set its IPO price on Tuesday evening at $30 per share, significantly above the range he had initially chosen, between $25 and $27, a sign of investor appetite.

The operation values Klaviyo at 7.5 billion dollars, and around 9.3 billion including the securities and stock options allocated to employees and managers.

The IPO market remains fragile, as demonstrated by the backlash suffered by Arm (-2.00%) and Instacart (-5.14%) after their initial listings. The first took the direction of a fourth negative session in a row on Tuesday after its initial jump, and lost some $10 billion in market valuation.

The social network Pinterest was sought after (+5.51%), the day after an investor day which saw the San Francisco group anticipate an acceleration in its growth and an improvement in its margins.

The agri-food company General Mills (-1.18%) did not benefit from better profit and turnover than expected for its first financial quarter 2024 (from the end of May to the end of August), in particular thanks to increases in price. The owner of Cheerios cereal and Häagen-Dazs ice cream confirmed its guidance for its full fiscal year.