The floor of the New York Stock Exchange (GETTY IMAGES NORTH AMERICA/AFP/SPENCER PLATT)
The hesitant and volatile New York Stock Exchange was mostly in the red on Monday, at the start of a week loaded with crucial indicators and which opens the corporate earnings season.
The Dow Jones grabbed 0.08%, the Nasdaq fell 0.67% and the S&P 500 fell 0.32% around 2:00 p.m. GMT.
After a euphoric start last week, the indices ended in a loss on Friday in the wake of US employment figures leaving no doubt about the Fed’s desire to continue its rate hikes.
The Dow Jones had lost 2.11% to 29,935 points, the Nasdaq index had dropped 3.80% to 11,094.50 points and the broader S&P 500 index, 2.80% to 3,655.75 points.
Over the week, the index of star stocks had nevertheless advanced by 1.99%, the Nasdaq, which is dominated by technology, by 0.73% and the S&P 500 by 1.51%.
The employment report published on Friday showed that the labor market was still dynamic with 263,000 job creations and an unemployment rate which fell to its lowest in 50 years (3.5%). These sufficiently solid figures are enough to encourage the Federal Reserve to continue tightening financial conditions to curb inflation. Its next monetary meeting is scheduled for November 1-2.
“The stock market is starting the week licking its wounds after Friday’s sales” without being influenced on Monday by the bond market, closed to observe the Columbus Day holiday in the United States, recalled Patrick O’Hare of Briefing. com.
But investors “nevertheless keep in mind the economic data to come, in particular the producer price index for September expected on Wednesday, that of consumer prices on Thursday and retail sales on Friday”, underlined the analyst.
The CPI inflation index for September should show a small year-on-year decline to 8.1% against 8.3% the previous month but it could increase over the month, due to energy prices, which are falling cup.
Friday, it will also take into account the opening of the earnings season which begins with four of the largest global banks: JPMorgan, Citigroup, Wells Fargo and Morgan Stanley.
The dollar was still gaining ground against the euro, boosted by US employment and its status as a safe haven as fears of an escalation in the war between Russia and Ukraine darken the mood of investors.
Around 2:00 p.m. GMT, the dollar gained 0.41% against the European currency at 0.9704 dollars for one euro, approaching its lowest level since 2002 reached at the end of September at 0.9536 dollars for one euro.
Leading the Nasdaq, shares of semiconductors fell after new measures taken by Washington against the purchase and manufacture of these components by China. These directives place restrictions on the export of chips used in artificial intelligence in particular.
Nvidia dropped 3.06%, AMD lost 2.67% and Micron Technology 1.06% while Intel held steady.
Electric vehicle maker Rivian plunged more than 8% to $31 after the disappointment of a voluntary recall of almost all of the 14,000 vehicles that the new manufacturer has produced, due to a steering problem, however easy to to fix.
Paypal tumbled nearly 6% after receiving a barrage of criticism from customers after the online payments service claimed it would impose a $2,500 penalty on users posting false information. The group backed down over the weekend saying it had no intention of issuing fines to its users.
© 2022 AFP
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