Wall Street opened higher on Monday, boosted by optimism around technology stocks amid the persistent budget impasse in the United States, which limits access to crucial economic data.
In early trading, the Dow Jones index rose 0.03%, the Nasdaq gained 0.98%, and the broader S&P 500 index gained 0.44%.
The New York Stock Exchange closed in green on Friday, boosted by the good financial results of the technology giant Amazon, which was a relief for investors after the collapse of Meta the previous day.
The Dow Jones finished close to balance (+0.09%), the technology Nasdaq gained 0.61% and the expanded S&P 500 index rose 0.26%.
“Shares should offer an exceptional return of around 3% in October, thanks to the momentum generated by artificial intelligence,” summarized José Torres of Interactive Brokers.
The online retail giant
“Amazon rose” after the publication of its financial results the previous day, “and it is dragging the rest of the market with it,” Art Hogan, of B. Riley Wealth Management, told AFP.
The tech giant’s share price soared 9.58% to $244.22 following the release of its quarterly results on Thursday.
The fifth largest company in the world by market capitalization, Amazon exerts a strong influence on the US market, Hogan explained.
Meta (owner of Facebook, Instagram and WhatsApp) was instead harshly punished on Thursday for earnings that fell well short of expectations and for its increasing investment plans to support its AI strategy.
After plunging more than 11% on Thursday, its shares fell another 2.72% on Friday, to $648.35.
Agreement between the US and China
On the trade front, investors have “the impression that tension over trade relations between the United States and China has calmed down (…), which is helping” the market, Hogan said.
Presidents Donald Trump and Xi Jinping reached a deal Thursday to ease tensions during a meeting in South Korea.
Meanwhile, “the market appears to be accepting that the Federal Reserve (Fed, US central bank) may not cut interest rates again in December,” following Wednesday’s quarter-point drop, Hogan said.
The yield on the 10-year US Treasury bond fell slightly, standing at around 4.08% at 8:30 p.m. GMT, down from 4.10% at Thursday’s close.
In the stock market, Apple (-0.38%, to $270.37) fell due to disappointing sales of the iPhone in the fourth quarter of its fiscal year (which ends in September).
The share of the social network Reddit (+7.47%, to $208.95) rose after presenting better-than-expected results.
Getty Images shares fell 6.22% to $1.88 after announcing a partnership with American generative artificial intelligence startup Perplexity.
