PARIS, Jan 20 (Reuters) – The New York Stock Exchange closed lower on Thursday after spending most of the session in positive territory, a sign investors are still unconvinced of the opportunity for a rebound.
The Dow Jones index lost 313.26 points, or 0.89%, to 34,715.39, the broader Standard & Poor’s 500 fell 50.03 points, or 1.1%, to 4,482.73 and the Nasdaq Composite fell 186.24 points, or 1.3%, to 14,154.02 as it gained 2% at the start of the session.
The Nasdaq has been in the correction zone since Wednesday, defined by a drop of more than 10% from the last high, which dates from November. The Dow Jones, he now accuses five consecutive sessions of decline.
This downward movement is due in particular to the rapid rise in bond yields linked to expectations of a rise in interest rates a few days before the Federal Reserve’s monetary policy meeting.
This movement was interrupted Thursday, the yield of ten-year Treasury bonds returning to 1.8165% against more than 1.9% in session the day before, its highest level for two years.
But more is needed to reassure investors.
“There seems to be a general lack of conviction,” said Randy Frederick, Charles Schwab’s vice president of trading and derivatives. “Bargain buyers have taken action but lack momentum.”
The market barely reacted to the unexpected rise in jobless claims last week, which can be explained by the increase in COVID-19 cases.
VALUES
Almost all of the major sectors of the rating ended down, the marked decline being for that of non-constrained consumption, whose S&P index lost 1.94%. That of high technologies dropped 1.33%.
Among the main capitalizations of “techs”, Microsoft lost 0.57%, Apple 1.03% and Amazon 2.96%.
Exercise bike maker Peloton Interactive fell 23.93% after reports from CNBC that it has halted production of some products and is looking to cut costs.
In the news of the results, the insurer Travelers gained 3.19% after the publication of a record profit and the giant of the equipment and oil services Baker Hughes awarded 1.64%, the market hailing superior quarterly results. expectations to.
Netflix fell nearly 10% in after-hours trading as the market sanctioned fewer than expected new subscribers in the quarter to end December.