The stock exchanges in New York started a shortened trading week on Monday with gains. Wall Street will remain closed on Thursday for the state funeral of former President Jimmy Carter.
It will be a day of national mourning in the United States. The US government’s employment report will be released on Friday, which is vital to the Federal Reserve’s interest rate policy.
The winners in early trading included chip funds Nvidia, Broadcom, Advanced Micro Devices (AMD) and Micron Technology, with gains of up to 7.4 percent, helped by strong sales figures from Taiwanese chip company Foxconn.
Traders also processed the news that incoming President Donald Trump‘s employees appear to be weakening his plans for “universal” import duties. According to the newspaper The Washington Post, behind the scenes, levies are being considered to apply to every country but only to crucial imports. Trump has said that the newspaper’s reporting is incorrect. He previously advocated levies of 10 to 20 percent.
Fed rate cuts
The Dow Jones index was up 0.3 percent shortly after opening at 42,882 points. The broad S&P 500 rose 0.9 percent to 5,994 points, and the technology benchmark Nasdaq gained 1.3 percent to 19,883 points.
The minutes of the Fed’s most recent policy meeting will be published on Wednesday. The central bank cut interest rates again last month by a quarter of a percentage point but said it now expects two cuts this year, while previously it had assumed four cuts. The Fed will make a new interest rate decision at the end of this month.
US Steel takeover plans
Aircraft manufacturer Boeing benefited from increased investment advice from British bank Barclays and became 1.7 percent more valuable. Boeing has had a challenging year due to a series of technical problems with its aircraft and a long strike by factory workers. According to Barclays, there should be a recovery this year.
US Steel (up 4 percent) could count on interest again. The steel company is going to court together with Nippon Steel after President Joe Biden formally blocked the Japanese takeover of the company on Friday. They now want to challenge that decision legally. US Steel lost a lot on Friday due to the blockade of the takeover.
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