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US shares open flat as investors mull data, ECB rate cut
DJIA up 0.05% (Il Sole 24 Ore Radiocor) - New York, 06 Jun - US shares opened in neutral as investors digested a flurry of economic data and an interest rate cut by the European Central Bank that some hope could serve as a precursor.
As expected the ECB delivered a 25 basis point interest rate cut to become the first major central bank to pivot on monetary policy in the current cycle. Traders hope it may set the stage for more central banks to follow suit later in the year.
Investors are betting the Federal Reserve will make its first policy pivot in September, providing inflationary pressure shows clear signs of subsiding.
Today's weekly jobless data came in above expectations providing further evidence the labour market is softening.
The focus now shifts to tomorrow's key payrolls report.
Strong labor market readings have stoked concern the Federal Reserve may have to keep interest rate cuts higher for longer as it strives to bring inflation down.
On the stocks front, shares in Nvidia rose another 2% to post new record highs in early trade after the AI chipmaker broke through the 3 trillion dollar valuation mark yesterday. Its 10-1 stock split is planned for tomorrow.
Lululemon Athletica shares jumped more than 4% after the sportswear maker reported quarterly profit and revenue that beat expectations and raised a share buyback scheme. Discount retailer Five Below was down almost 18% after it cut its profit forecasts.
Just after the opening bell the Dow Jones was up 19.73 points, or 0.05%, at 38,827.06, the S&P 500 was up 3.07 points, or 0.06%, at 5,357.10 while the Nasdaq was up 13.76 points, or 0.08%, at 17,201.67.
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(RADIOCOR) 06-06-24 15:41:09 (0522) 5 NNNN