Operators of the New York Stock Exchange (GETTY IMAGES NORTH AMERICA/AFP/SPENCER PLATT)
The New York Stock Exchange was unable to transform its attempted rebound on Thursday, finally concluding in the red as investors once again focus on the path of the rates of the American central bank, the Fed.
The indices had started higher but lost momentum in the middle of the session, and the Dow Jones ended down 0.73% at 33,699.88 points. The technology-dominated Nasdaq dropped 1.02% to 11,789.58 points and the S&P 500 0.88% to 4,081.50 points.
“The market changed direction when bond yields rose,” noted Art Hogan of B. Riley Wealth Management.
Bond yields, which had eased slightly in the first part of the session, started to rise again, weighing on the evolution of equities. Thus, the rates on 10-year bonds rose to 3.66% against 3.60% the day before.
“It looks like the market has decided to refocus on tough Fed rhetoric,” Spartan Capital’s Peter Cardillo told AFP.
President Jerome Powell and members of the central bank have in recent days a little upset investors by speaking out in favor of keeping rates high in the medium term, or even higher if the labor market remains dynamic and the economy Inflation is not slowing any further.
“Until we have more evidence that inflation is coming down, the market will continue to focus on the Fed,” repeated Peter Cardillo.
The next update on US inflation will come on Tuesday with the publication of the CPI consumer price index for January.
“The market is actually digesting the rise that has taken place in recent weeks. The question is whether it is a slight and healthy decline or whether we are starting a bear market again,” said Adam Sarhan of 50 Park Investment. .
The title Disney, a member of the Dow Jones, carried the market at the start of the session on the news of a plan to cut costs with 7,000 layoffs.
But the enthusiasm faded when activist shareholder Nelson Peltz, of the Trian fund, indicated that his battle for a cut in the entertainment giant’s spending was now over. The title finally fell by 1.31%.
While a race for artificial intelligence equipment is raging between the big names in the internet, Alphabet (Google) has again let go of ballast for the second session in a row (-4.54%).
Its conversational robot “Bard” presented in Paris displayed an error which had already cost 7% in the action the day before.
The Paypal electronic payment service, which lost 1.63% at the close, rose 2.88% in electronic exchanges. The group managed to generate earnings per share above expectations despite a drop in the volume of transactions it handled.
The title of the car rental company with drivers Lyft closed down 3.16% at the close. And it plunged more than 24% in post-closing trading after reporting a disappointing outlook for the current quarter due to harsh weather conditions in California where the company has a strong presence.
Shares of cryptocurrency exchange Coinbase tumbled more than 14% as US stock market watchdog, the SEC, blamed rival Kraken for offering buy and sell transactions. sale without registering them. Kraken agreed to pay $30 million in penalties.
Toy maker Mattel lost more than 10% after disappointing sales at the end of the year, compressed by the difficult economic environment.
© 2023 AFP
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