A New York Stock Exchange operator (AFP/ANGELA WEISS)
The New York Stock Exchange ended sharply lower on Tuesday, driven by profit-taking on major technology stocks and a general movement of risk aversion.
The Dow Jones lost 1.04%, the Nasdaq index fell 1.65% and the broader S&P 500 index returned 1.02%.
Driving the market since the start of 2023, the “Magnificent Seven”, the seven giant tech capitalizations, have been the subject of profit-taking like they have not seen for weeks.
Microsoft (-2.96%), Amazon (-1.95%) and Meta (-1.60%) have thus folded back their sails.
But other members of the club were even more affected, fueling the scenario of a split within the new economy elite.
Already behind for several months, Apple has lost another 2.84% and has fallen by 11% since the start of the year.
The Cupertino group was fined 1.84 billion euros on Monday by the European Commission for anti-competitive practices in the online music market.
Added to this is the concern linked to iPhone sales in China, according to analysts at Wedbush Securities, as well as doubts about the Apple firm’s ability to launch a disruptive product, which it does not has done more since his connected watch nine years ago.
Another lagging stock, Alphabet (-0.31%), which has contracted by 5% since the start of the year, amid doubts about its ability to compete with the major players in the generative artificial intelligence (AI).
Tesla (-3.93%) is on the verge of going off the road, down 27% since the start of the year, victim of the slowdown in the electric vehicle market and the emergence of Chinese manufacturers, especially BYD.
The group led by Elon Musk was forced on Tuesday to suspend activity at its factory in the suburbs of Berlin after an arson attack. A small far-left group claimed responsibility for the action, which led to a power outage.
Only of the seven to have escaped the squall on Tuesday was the semiconductor specialist Nvidia (+0.86%), which nothing seems to be able to stop.
“I think we can still go a little higher,” said Kurt Spieler, of FNBO, about the New York indices, “but we are approaching the end of a cycle” of increase.
Generally speaking, the session suffered from a climate of risk aversion, while operators positioned themselves before the important deadlines of the week, namely the interventions, in Congress, of the president of the American central bank (Fed ) Jerome Powell, Wednesday and Thursday, and the monthly jobs report, Friday.
Investors took refuge in the bond market which saw the yield on 10-year US government bonds fall to 4.13%, compared to 4.21% the day before. Bond rates move in the opposite direction to their prices.
oil, precious metals, with the exception of gold, or agricultural raw materials all ended up in the red.
Bitcoin also fell after setting a new historic record, at $69,191, also the victim of profit-taking.
The cryptocurrency exchange platform Coinbase dropped 5.40%.
The Target supermarket chain stood out (+12.02%) after publishing better than expected results, in particular net profit, boosted by the drop in stocks and the normalization of supply costs.
The Minneapolis (Minnesota) group remains in three consecutive quarters of contraction in its sales on a comparable basis, but expects a return to growth at the end of the year.
After falling by more than 40% in two sessions, the regional credit institution New York Community Bancorp (NYCB) has finally rebounded (+17.95%). Considered as the possible weak link in the American banking system, this bank reported Thursday deficiencies in its internal control procedures.
© 2024 AFP
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