PARIS, Jan. 10 (Reuters) – The New York Stock Exchange opened lower on Monday, extending its losses on Friday following the release of the monthly U.S. jobs report, which rekindled fears of a tightening accelerated US monetary policy.
In the first exchanges, the Dow Jones index lost 215.39 points, or 0.59%, to 36,016.27 points and the Standard & Poor’s 500, larger, fell by 1.09% to 4,625.72 points.
The Nasdaq Composite lost 1.84%, or 274.46 points, to 14,661.44.
The publication of the monthly US employment report on Friday showed that job creation in December came out below expectations while at the same time the rise in the average salary exceeded the consensus.
These data are fueling expectations of an interest rate hike by the Federal Reserve as early as March, the probability being more than 70% in the markets. Goldman Sachs now expects four US rate hikes this year, one more than before.
“Fears about the Fed are the main focus of the session as was the case last week,” said Thomas Hayes of Great Hill Capital.
Investors are also being cautious ahead of the publication on Wednesday of monthly consumer price figures in the United States and the start on Monday of the summit between the United States and Russia in Geneva amid geopolitical tensions.
In terms of values, technology (-1.35%) are once again penalized by the prospect of an increase in the cost of credit while financials (+ 0.63%) and banking (+ 1.09%) benefit the anticipated rate hike, which should boost the sector’s margins.
JPMorgan Chase & Co, Goldman Sachs, Bank of America Corp, and Citigroup advance 1% to 1.5%.
Digital heavyweights like Apple, Amazon, Microsoft and Meta Platforms are declining from 1.2% to 3%.
Tesla lost 3.6% after the automaker announced a price hike for the autonomous driving assistance option.
In terms of mergers and acquisitions, Take-Two Interactive plunges 10.8% after the announcement of the takeover of Zynga (+ 46.1%) on the basis of an overall valuation of nearly $ 12.7 billion (11 , 2 billion euros).
In health, Reviva Pharma jumped 13.4% after the green light from the Food and Drug Administration, the health authority in the United States, for the continuation of clinical trials of its experimental treatment against schizophrenia.
Nike fell nearly 4%, penalized by the lowering of recommendation from HSBC, which notes persistent problems in supply chains.
* For the values to follow, click on (Written by Claude Chendjou, edited by Jean-Michel Bélot)