Operators of the New York Stock Exchange (AFP/ANGELA WEISS)
The New York Stock Exchange ended higher on Wednesday, regaining its senses after its drop the day before, calm despite the less rapid deceleration than expected in inflation.
The Dow Jones gained 0.40%, the Nasdaq index rose 1.30% and the broader S&P 500 index gained 0.96%.
“We had a little rebound today,” commented Jack Ablin, of Cresset Capital. “We had already accelerated a little at the end of the session on Tuesday, and that set the scene for today’s session.”
On Tuesday, Wall Street gasped after the publication of the CPI price index, which came out above expectations, indicating that inflation is taking longer than expected to return to normal.
“Investors left the night and came back today with a different attitude,” explained Jack Ablin.
Many operators noted that the rise in prices continued to slow down and that rate cuts were likely to remain on the agenda this year, even if they will undoubtedly be fewer than expected.
They also “concluded that the economy is still doing well”, underlined Jack Ablin.
After having turned their backs, once is not customary, on giant technological capitalizations, on Tuesday, investors resumed pouring billions into these stocks which have been driving the New York market for more than a year.
The undisputed king of this sequence, Nvidia, specialist in graphics cards, was once again at the forefront.
Carried away by its momentum, the Santa Clara (California) company overtook, in this single session, Amazon and Alphabet, to become the third largest capitalization on Wall Street, the fourth in the world, with 1.825 billion dollars.
Nvidia now weighs more on the stock market than Amazon, although analysts anticipate an annual turnover, published next week, equivalent to a tenth of that of the ogre of Seattle (Washington State).
Like Nvidia, Meta (+2.86%), Tesla (+2.55%), AMD (+4.17%) and Netflix (+4.47%) also benefited from this buyback movement. .
The Dow Jones, on the other hand, remained behind, weighed down by old economy companies, so-called defensive values, that is to say theoretically less sensitive to the economic situation.
Walmart (-0.37%), Johnson & Johnson (-0.47%) and Procter & Gamble (-0.41%) all ended in the red.
The appetite for risk has returned, as shown by the decline in the VIX index (-9%), which measures market volatility and investor nervousness.
Wall Street also welcomed the decline in bond rates, which were feverish on Tuesday. The yield on 10-year US government bonds stood at 4.26%, compared to 4.31% the day before at closing.
On the market, the agri-food group Kraft Heinz fell (-5.45%), reflecting its turnover in the fourth quarter. The manufacturer of Heinz ketchup and Philadelphia cheese spread attributed part of the drop in its volume sales to price increases that turned some consumers away from its products.
the vehicle reservation platform with driver (VTC) Lyft put its foot down (+35.12%), after the publication of better than expected results, Tuesday after the market. The group also expects to generate, for the first time, a positive net cash flow over the entire current year.
During electronic trading after Wednesday’s close, the stock rose into orbit, gaining more than 60%, following a typographical error in the earnings release.
The latter reported a forecast of an improvement of 5 percentage points in Lyft’s margin for 2024, when it was only 0.5 points in reality. CFO Erin Brewer corrected the blunder during the conference call with analysts.
Its major competitor Uber also gained speed (+14.73%), after the announcement of the launch of its first share buyback program, with an envelope of 7 billion dollars.
© 2024 AFP
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