The floor of the New York Stock Exchange (GETTY IMAGES NORTH AMERICA/AFP/SPENCER PLATT)
The New York Stock Exchange was trading in disarray on Friday shortly after the opening, at rest after a boost and new records the day before, but several of the giant technological capitalizations continued their rise.
Around 3:55 p.m. GMT, the Dow Jones crumbled by 0.34%, the Nasdaq index nibbled 0.10% and the broader S&P 500 index was close to balance (-0.02%).
On Thursday, the Nasdaq finished at a historic closing high, erasing its previous record, which dated from November 2021. The S&P 500 had also reached its highest level at the end of the session.
“After a big upward movement, the market has two ways of consolidating. Either it goes up and down or it falls,” recalls Adam Sarhan, manager of 50 Park Investments. “And the fact that he refuses to back down is a very positive sign.”
Despite this stabilization, several of the stars of the technology sector continued their inexorable advance, first and foremost Nvidia (+1.38%), to the point of once again crossing the threshold of 2,000 billion dollars in market capitalization.
Its competitors AMD (+2.27%), Intel (+0.77%), Qualcomm (+0.51%) and Broadcom (+4.23%) were also sought after, as was Meta (+1.76%). %).
Other indicators showed a still optimistic market, notably the poor start to the session of so-called defensive stocks, that is to say theoretically less sensitive to the economic situation, such as the industrial conglomerate 3M (-0.88%), Coca-Cola (-0.99%) or Nike (-1.57%).
Another signal, “the movement is expanding to segments of the market which had not participated in the progression until now”, notes Adam Sarhan.
For the manager, “this bull market is only just beginning.”
On the bond market, rates tended slightly. The yield on 10-year US government bonds stood at 4.27%, compared to 4.25% at Thursday’s close.
The operators followed the path of the regional credit institution New York Community Bancorp (NYCB) which fell at the opening (-25.47%), after having reported, Thursday, after trading, failures in its internal control and of the resignation of its general director.
NYCB, which had taken over its failing competitor Signature Bank during the banking crisis of March 2023, was already considered the weak link in the American banking system, weakened by a large commercial real estate credit portfolio.
“When buyers are in action, this bad news is swept under the rug,” argues Adam Sarhan. “But things can change very quickly. For now, this is an isolated incident, which is under control.”
NYCB’s setbacks nevertheless affected other regional banks with strong exposure to commercial real estate, which the emergence of teleworking has put in difficulty. Valley National Bancorp (-4.15%), based in New Jersey, and Columbia Banking System (-3.37%), present in the western United States, were thus in the red.
Hewlett Packard Enterprise (HPE) rose (+1.77%), despite a marked decline in its turnover (-13.5%), the group not taking advantage of the current appetite for remote computing ( cloud) and artificial intelligence, although the cloud is one of its main activities. Some investors preferred to retain a pleasant surprise on net profit.
HPE’s results contrasted with those of Dell (+25.80%), which exceeded expectations and reported strong demand for its servers.
© 2024 AFP
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