Around 2:15 pm, the Dow Jones gained 0.98%, the Nasdaq index gained 1.64% and the broader S&P 500 index gained 1.18%.
At a poor weekend in indicators and results, operators were waiting for Jerome Powell’s intervention, which began around 2:00 pm GMT, on the occasion of the symposium in Jackson Hole (Wyoming), which brings together many central bankers from around the world.
The president of the Fed considered that “the time has come” for a first-rate cut.
Bond rates reacted immediately, with the yield on 10-year US government bonds falling to 3.79%, compared to 3.85% the day before.
“The market will be paying attention to what he says, how he says it, and whether he suggests that the rate cut could be more than a quarter point,” the standard format for reviews by central banks , the analyst added. .
Thanks to a higher-than-expected activity indicator, operators tempered their expectations for an aggressive signal from the Fed, the American economy showing signs of resilience.
If Jerome Powell chose to warn “it could be negative for the market”, warned Peter Cardillo.
On the stock market, the semiconductor sector led the Nasdaq, recovering from a difficult session on Thursday. So Nvidia (+3.60%), Broadcom (+2.77%) and Qualcomm (+2.98%) benefited from the market debt.
The days follow each other and they are not the same for Paramount Global, in the red (0.98%). According to the Wall Street Journal, the Skydance studio challenged the media group regarding the possibility of extending the period in which offers other than its own can be submitted to Paramount’s board of directors.
The businessman Edgar Bronfman Jr made the first proposal, which he noticed only a few hours later, this week, according to some American media.
Railway company Canadian National Railway (CN) appreciated (+1.49%) after the Canadian government ordered the opening of an arbitration procedure between CN and the Canadian Railway Teamsters Conference union to reach a business agreement.
CN suspended its operations in Canada on Thursday due to a lack of agreement, disrupting the transportation of goods in North America.
On the other hand, the same union refused to return to work at Canada Pacific Kansas City (+1.67%), contesting the legitimacy of the government’s decision.
Mediterranean-inspired fast-food chain Cava jumped (+15.29%) after beating expectations in its second financial quarter and raising its annual targets.
Since the IPO was implemented in June 2023, Cava’s market capitalization has doubled, to more than $11 billion, and the group now has more than 300 branches.
The Moderna laboratory capitalized (+0.31%) on marketing authorization, for those over 60, from the European Medicines Agency for its vaccine against the respiratory syncytial virus (RSV), which is responsible for bronchiolitis.
The ready-to-wear chain Gap advanced (+2.23%), and its symbol on the New York Stock Exchange was changed from GPS to GAP, 48 years after its first listing.
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