Wall Street climbs with Microsoft, ahead of inflation and the Fed

Published 12 Dec 2022 at 22:26

by Chuck Mikolajczak

NEW YORK, Dec 12 (Reuters) – The New York Stock Exchange ended higher on Monday, supported by Microsoft, on the eve of the release of U.S. inflation figures for November, which were not expected. change the expected scenario of a moderation in the Federal Reserve’s interest rate hike on Wednesday.

The Dow Jones Industrial Average rose 1.58%, or 528.58 points, to 34,005.04.

The broader S&P-500 rose 56.18 points, or 1.43%, to 3,990.56.

The Nasdaq Composite rose by 139.12 points (1.26%) to 11,143.74 points.

After strong gains in October and November, the S&P-500, the main benchmark for investors, has bounced back since the beginning of the month, posting its worst weekly percentage performance in nearly three months last week on macroeconomic indicators. The United States.

The consumer price index, due on Tuesday, should show a slowdown in inflation in November, though still at a high level of 7.3% annualized from 7.7% in October.

If this forecast is confirmed, it could be interpreted as a sign of a now firmly entrenched trend of deflation in the US, which is likely to encourage the Federal Reserve to moderate its monetary policy tightening.

Thus, barring surprise, the Fed should announce on Wednesday an increase in its interest rate range of just 50 basis points after four consecutive increases of 75 points.

US Treasury Secretary Janet Yellen fueled the debate on Sunday by predicting a decline in inflationary pressures in 2023 in the US without ruling out the risk of recession.

In individual values, Microsoft gained 2.9% after the announcement of a 4% stake in the capital of the operator of the London Stock Exchange, London Stock Exchange Group, in full development in the analysis and the financial data.

Pfizer, for its part, rose 0.85% after its vaccine revenue forecast.

In mergers and acquisitions, biotech company Horizon Therapeutics jumped 15.5% after announcing its $26.40 billion takeover by Amgen (-0.67%).

Barbecue equipment specialist Weber made an even bigger gain (23.23%) after agreeing to be delisted by its controlling shareholder BDT Capital Partners.

Rivian Automotive, on the other hand, lost 6.16% following the suspension of discussions with Mercedes-Benz Vans on the production of electric vans in Europe.

(Chuck Mikolajczak reporting, French version Bertrand Boucey)

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