(CercleFinance.com) – After a green start to the session, the New York Stock Exchange turned down on Friday morning, the signs of a decline in the morale of American households having revived fears for the economy.
At the end of the morning, the Dow Jones fell 0.1% to 33,261 points, while the Nasdaq Composite dropped more than 0.3% to 12,285.6 points.
Over the week as a whole, the Dow is currently losing 1.1% and is about to enter a second week of decline, while the Nasdaq saves the day again by posting a weekly gain of around 0.4 %.
Wall Street is once again penalized by worries surrounding the health of the American economy, with the threat of a recession becoming more and more definite in the course of the second half of the year.
In a note released in the morning, BofA strategists warn that a recession could ‘shatter’ the credit market and technology stocks, just as it did in 2008.
Another reason for caution, the announcement at the start of the session of a plunge in the University of Michigan’s confidence index in May does nothing to encourage risk taking.
This more marked than expected bout of weakness in household morale led in particular to a 0.4% drop in the S&P sector index of non-essential consumption.
When it comes to individual values, few names stand out in the early exchanges.
Note, however, that Tesla is sinking into the red (-0.5%) following the confirmation by NBCUniversal of the immediate departure of Linda Yaccarino, a senior executive of the media group, widely expected to take over the general management of Twitter.
Such a reshuffle would have the merit, according to analysts, of allowing Elon Musk to focus again on Tesla, at a time when the group is facing increasingly fierce competition in the electric vehicle market.
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