The floor of the New York Stock Exchange (GETTY IMAGES NORTH AMERICA/AFP/SPENCER PLATT)
The New York Stock Exchange was trading higher on Friday, after opening in the red, as bond rates remained high and the technology sector gave bad signals.
The Dow Jones index yielded 0.09%, the Nasdaq dropped 0.20% and the S&P 500 0.13%, a few minutes after the opening.
Thursday, the Dow Jones had lost 0.30% to 30,333.59 points, the Nasdaq index had fallen by 0.61% to 10,614.84 points, and the broader S&P 500 index by 0.80% to 3,665.78 points.
Bond yields on 10-year Treasury bills climbed to 4.30% from 4.22% around 7:45 p.m. GMT. Those at 30, which condition mortgages in particular, rose to 4.36%, the highest since 2011, when the real estate market was in the doldrums.
Philadelphia Fed President Patrick Harker’s comments on Thursday continued to resonate in the bond market. Mr. Harker said that the Central Bank was “disappointed” with the lack of progress in its fight against inflation and that interest rates needed to rise further, so economic activity should slow down.
Fed Governor Lisa Cook also said interest rates must continue to rise to bring inflation under control, also noted Art Hogan of B. Riley Wealth Management.
“Market participants are now trading the prospect of a higher Federal Funds (Fed Funds) final rate than previously thought, which is linked to concerns that inflation may persist at a higher level” , summed up Patrick O’Hare.
Several stocks swayed, especially in the technology sector. Snap, the parent company of the Snapchat application, plunged 29% to less than $8 a share, after announcing the weakest quarterly growth in sales. The company had already announced this summer the elimination of 20% of its workforce.
Facebook (Meta), which derives a large part of its resources from advertising, lost 2.66%.
Twitter dropped 5.36% to 50 dollars as worrying news accumulated around the takeover of the social network by Elon Musk.
Press information evoked a reluctance of the American authorities in the face of this acquisition in which the boss of Tesla would like to involve foreign partners. According to Bloomberg News, a review of Elon Musk’s partnership operations regarding his Starlink satellite network but also Twitter could be considered in the name of national security. Tesla yielded 0.62%.
Member of the Dow Jones, American Express lost 4.57% to 136 dollars despite an increase in its turnover and its quarterly profit.
The group has put more money aside in case the economic situation deteriorates. “But we are aware of the mixed signals in the economy and have strategies in place to turn around if the operating environment changes dramatically,” AmEx CEO Stephen Squeri said in a statement.
© 2022 AFP
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