A New York Stock Exchange operator (GETTY IMAGES NORTH AMERICA/AFP/SPENCER PLATT)
The New York Stock Exchange indexes ended mixed on Monday, with the Dow Jones remaining in the red as the technology sector, which attracted buying after the recent decline, propelled the Nasdaq.
The Dow Jones index fell 0.11% to 34,463.69 points, the tech-heavy Nasdaq jumped 1.56% to 13,497.59 points and the S&P 500 index advanced 0.69% at 4,399.77 points.
Despite rising bond yields that usually weigh down risky assets, shares in the information technology sector rose 2.26%.
“Something is not quite right as US equities rose despite a resumption of massive bond market selling” of Treasury bills whose yields rise when their prices fall, said Edward Moya of Oanda.
Bond yields continued to be under pressure, with ten-year yields climbing again to a 16-year high of 4.33% while short-term yields were close to 5%.
The analyst noted that investors were attracted by downward purchases, after the decline in indices last week (-2.6% for the Nasdaq). “Investors remain bullish on hopes for a soft landing for the economy,” Moya said.
Edward Moya, however, doubted the longevity of this stock market momentum: “equities are going to struggle if real yields continue to recover. Not only are soaring borrowing costs bad for the economy, but they also offer alternatives extremely attractive for short-term investments,” he warned.
The market was also supported by the prospect of good results which could be announced on Wednesday by the chip manufacturer Nvidia (+8.47% to 469.67 dollars), the darling of the market, driven by the development of artificial intelligence .
The publication of the results of the firm of cybersecurity software Palo Alto Networks “also gave a boost”, said Edward Moya. The stock soared 14.84% to $240.81 after better-than-expected earnings per share.
Even if its quarterly turnover was a little disappointing, it is 26% higher than last year at the same time.
Another cybersecurity specialist SentinelOne also stood out (+16.16% to 16.82 dollars): the company founded in Israel would seek to sell itself, according to press reports.
At the end of the week, “investors will focus on the interventions of Fed officials which will culminate on Friday with President Jerome Powell’s speech at the Jackson Hole economic symposium” in Wyoming, commented Will Compernolle of FNH Financial. .
“Markets will look to Mr. Powell for a sense of the Fed’s center of gravity after the late July meeting” where the US central bank raised rates slightly for the 11th time in nearly 18 months.
Separately, on Monday, China slashed the one-year interest rate, which serves as a benchmark for business loans, to 3.45% to stimulate the economy.
The title of Meta gained 2.35% to 289.90 dollars while, according to the Wall Street Journal, the firm of Mark Zuckerberg could announce this week a web version of its social network Threads, launched a month ago and half to compete with Twitter, renamed X by its owner Elon Musk.
Tesla, down all last week, revived (+7.33% to 231.28 dollars).
The Regeneron laboratory climbed 3.94% to $844.37, celebrated after a green light from the FDA drug authority for its treatment for macular degeneration.
Electric truck maker Nikola slumped 22.96% to $1.51 as it suffered the impact of a costly recall of its batteries after incidents involving fire starts.
The group warned on Monday that it may not meet its vehicle delivery targets this year.
Vaccine maker Moderna soared (+9.31%) as it signed a partnership with China-based CARsgen Group to develop a serum against certain types of cancers.
© 2023 AFP
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