Wall Street hovers around equilibrium halfheartedly

The entrance to the New York Stock Exchange (AFP/ANGELA WEISS)

The New York Stock Exchange was trading just above equilibrium after opening slightly lower on Tuesday, lacking conviction in the absence of economic indicators.

The Dow Jones index gleaned 0.04%, the Nasdaq took 0.03% and the broader S&P 500 index fell by 0.10%, around 4:20 p.m. GMT. At the opening, the indices evolved as much in the red.

The day before, after mixed news on the side of the activity of services in the United States, the Dow Jones index had dropped 0.59% to 33,562.60 points, the Nasdaq, dominated by technology, had lost 0.09% to 13,229.43 points and the S&P 500 fell 0.20% to 4,273.75 points.

“The lack of conviction on Tuesday is a bit about the arrival of the summer atmosphere but it is also due to the feeling that the mega-caps have hit a wall,” said Patrick O’Hare of Briefing.com.

“Investors are also in a wait-and-see mode ahead of the CPI inflation index release next week and the Fed’s monetary meeting,” the analyst added.

For Schwab experts, risk appetite was cut “given the rise of the dollar” and bond yields.

These went from 3.68% to 3.72% for rates on ten-year bonds.

The market was also digesting Apple’s entry into the metaverse. The apple group announced on Monday the launch of its first virtual and augmented reality headset, called Vision Pro, which the manufacturer will sell for 3,500 dollars.

Just before the announcement, the Cupertino group, already the first capitalization on Wall Street, reached the historic peak of 2.850 billion dollars.

The title reached a ceiling before retreating at the close. Tuesday, it yielded 0.79% to 178.50 dollars around 2:20 p.m. GMT.

But it was the universe of cryptocurrencies that shook the market on Tuesday. After the legal attack on Binance, the largest trading platform in the world, by the SEC on Monday for circumventing regulations, it was around Coinbase to be prosecuted by the stock market policeman.

– Crypto bomb –

The American Financial Markets Authority has sued the first cryptocurrency trading platform in the United States, Coinbase, for non-compliance with the regulations.

“It went off like a bomb,” commented Patrick O’Hare. Coinbase’s title on the Nasdaq fell more than 16% to 49.10 dollars.

The market policeman criticizes the platform, which has 110 million users, for not having registered with him as an exchange platform and intermediary for cryptocurrency transactions.

By the end of 2022, Coinbase had $80 billion in assets.

SEC boss Garry Gensler, interviewed by CNBC, denounced the crypto-asset market “which undermines investor confidence in the capital markets in general”.

Bitcoin, which had lost some 6% the day before to fall to its lowest level in three months after the announcement of Binance’s lawsuit by the SEC, recovered slightly (+1.5%) rising to 26,000 dollars.

Oil shares fell in the wake of oil prices, which despite the production cuts announced by Saudi Arabia for next month, fell by almost 1.5%.

Thus Exxon Mobil yielded 0.43%, Chevron 0.65%.

The action of Unity Software fell back 2.42% after a jump the day before in the wake of the announcement of the headphones from Apple which will use its software.

© 2023 AFP

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