PARIS, April 8 (Reuters) – The New York Stock Exchange is in the red shortly after opening on Friday as bond yields continue to climb after a volatile week marked by concerns over a possible monetary tightening of the Reserve government to curb inflation and the conflict in Ukraine.
In the first exchanges, the Dow Jones index lost 58.99 points, or 0.17%, 34,524.58 points and the Standard & Poor’s 500 fell by 0.37% 4,483.38 points.
The Nasdaq Composite cde 0.93%, or 128.817 points, 13,768.483.
On the government bond market, the yield on ten-year Treasury bonds takes more than five basis points to 2.7076%, the highest since March 2019.
In their weekly note, Bank of America strategists warned that the macroeconomic situation was rapidly deteriorating and could tip the US economy into recession as the Fed tightens monetary policy.
The minutes of the institution’s March meeting, published on Wednesday, show that the central bank could start reducing its balance sheet as soon as next month and that it plans to do so at twice the pace of the previous phase. of “quantitative tightening”.
The continued rise in bond yields is impacting the technology sector (-1.22%), which is particularly sensitive to changes in interest rates.
Microsoft, Tesla and Nvidia yield from 1.19% to 2.81%.
The big banks such as JPMorgan Chase & Co (+0.83%), Wells Fargo (+1.55%) or Citi (+0.72%), which will publish their first quarter results this week, are favored by the rise yields.
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(Laetitia Volga, said by Sophie Louet)