Passers-by in front of the New York Stock Exchange (NYSE) and a statue of George Washington on Wall Street (New York), March 23, 2021 (AFP/Angela Weiss)
The New York Stock Exchange, which opened in the red on Tuesday after four consecutive sessions of decline and an unexpected adjustment to the monetary policy of the Bank of Japan, was moving up in the morning.
The Dow Jones gained 0.47%, the Nasdaq 0.53% and the S&P 500 0.47% around 3:30 p.m. GMT.
On Monday, ruminating on fears of recession, the Dow Jones index had fallen 0.49% to 32,757.54 points, the Nasdaq, which is dominated by technology, had lost 1.49% to 10,546.03 points and the S&P 500, had dropped 0.90% to 3,817.66 points, the lowest in two months.
“The Bank of Japan surprisingly changed its interest rate curve control policy” on Japanese government bonds “which seemed to cause a massive sell-off in the markets,” Schwab analysts observed.
The BoJ will now tolerate a fluctuation in these ten-year yields between -0.5% and +0.5%, whereas it previously set the ceiling at +0.25%.
“This hawkish move by the Bank of Japan took markets by surprise,” noted Joe Manimbo of Convera Financial Services as stocks on global stock markets skidded and the yen soared.
Investors also continued to be concerned that the end-of-year rebound, commonly known as the “Santa Claus rally” or Santa Claus rally, would not be present this year, analysts also pointed out. of Wells Fargo, due to fears of a global recession.
On the bond market, yields on ten-year US Treasury bonds jumped to 3.67% from 3.58% the day before.
On the data front, investors were also digesting mixed numbers on the real estate market.
If housing construction fell less than expected by 0.5% in November, building permits, on the other hand, which give an idea of the slowdown to come, fell by 11.2%.
The real estate sector is one of those that has suffered the most from the rise in interest rates by the Federal Reserve in recent months.
Listed, the Wells Fargo bank (+0.66%) was hardly affected by the fine imposed on it by the Consumer Protection Bureau (CFPB) because of irregularities in the management of car and real estate loans .
Nike (-0.56%) and express carrier Fedex (-0.42%) were down pending their earnings announcement after the market close.
The bank agreed to pay $3.7 billion to close the lawsuits, including $2 billion in refunds to injured customers and a $1.7 billion fine, one of the largest penalties ever imposed by the CFPB.
Agribusiness giant General Mills was down 4.69% to $82.91 despite better-than-expected second-quarter results, but cereal maker Cheerios u was mostly down on rising prices, raising concerns Investors.
Premium electric vehicle maker Lucid Group climbed nearly 5% after successfully raising $1.5 billion to raise capital. At less than 8 dollars, the title of the manufacturer is however down 80% since the beginning of the year.
Tesla shares continued their descent to hell at $145.99 (-2.59%) amid the tribulations of its founder Elon Musk who is struggling with the management of Twitter, which he acquired at a high price ago two months.
Gilead Laboratories lost 3.21% after publishing mixed results on the medium-term efficacy of an experimental treatment against lung cancer.
© 2022 AFP
Did you like this article ? Share it with your friends with the buttons below.
