Wall Street: appetite back in force, record high for the Dow

(CercleFinance.com) - The New York Stock Exchange continued its ascent on Wednesday, with a new record for the Dow Jones, following the publication of indicators that reinforced the scenario of a Fed rate cut.


At the end of the morning, the Dow was up 0.1% at 36,162.7 points, after having peaked at 36,292.5 points at the opening, its highest level ever.

The Nasdaq Composite was up 0.4% at 14,327.6 points, returning to within a few hundred points of 14,446.5.

The trend continues to be driven by expectations of a rate cut by the Federal Reserve following mediocre job creation in the private sector.

According to the latest survey by private firm ADP, the US private sector created just 103,000 jobs in November, well below expectations.

This indicator, which comes two days before the much-awaited official statistics from the Labor Department, confirms the very marked slowdown in the US labor market.

According to analysts at CPR Asset Management, this is the third consecutive month in which monthly job creation in the private sector has hovered around 100,000, a level they consider insufficient to prevent a rise in unemployment.

The Fed no longer needs to fear a price-wage loop", stresses the asset manager, who consequently sees the Fed recalibrating its policy in 2024.

These indicators, which support the scenario of a forthcoming rate cut by the Federal Reserve, are reflected in a further decline in US Treasury bond yields.

The ten-year yield has dropped by more than five basis points to less than 4.12%, its lowest level since the end of August.

Despite a further sharp fall in long-term rates, the dollar continues to show strength, notably against the euro, which is stabilizing at around 1.0795.

On the NYMEX, U.S. crude oil (WTI) fell by almost 3% in the wake of the announcement of a further drop in weekly crude oil inventories.

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