(CercleFinance.com) – Something cracked this Friday on Wall Street: after 5 sessions of fairly heavy decline in ‘tech’, investors did not come to pay the dips as usual since the end of October.
On the contrary, they have transformed into sellers ‘in panic mode’, like Nvidia which has literally unscrewed (-10%, bottom of the S&P500 and the Nasdaq-100) with the break of the major support of $830.
Nvidia largely participated in the downturn on the ‘SOXX’ (-4% towards $198) which was already in very bad shape with -9% in 5 sessions (since April 11).
The main semiconductor barometer is sinking into a downward spiral: -9% weekly and -18% since March 8).
The S&P500 fell by -0.9% (towards 4,967), but it was a benign decline compared to that of the Nasdaq which fell by -2.05%, or -5.6%, the worst week since mid-January 2022.
Nvidia was not the only champion of the 1st quarter increase to unscrew since Netflix also plunged by -9%, AMD by -5.5%, Marvell Techno by -4.8%, Micron by -4.6% (and -13% over the past week), Broadcom -4.3%, ON.Semiconductor -3.5%, Microchip -3%.
The Dow Jones follows an opposite trajectory with a gain of +0.56%, supported by AMEX +6.2%, JP-Morgan +2.6%, Amgen +2.4%, Coca-Cola +2%.
The scores observed on Wall Street would not have surprised anyone this Friday morning (but the decline completely changed the theme during the session) because the markets were scared this morning with Israeli drone strikes on Iranian soil (military objective in the vicinity of Isfahan): everyone remembered the threats of a massive response from Tehran last Sunday… but nothing happened, and an apparent serenity returned over the hours (US indices generally stable around 4 p.m.) .
The ‘risk off’ having dissipated, the initial rate easing stopped at the end of the morning and the afternoon ended with renewed tension on the side of the American bond market (which no longer acts of refuge on the eve of the weekend, proof that investors are anticipating a ‘calm’ weekend on the geopolitical front).
The yield on US Treasury bonds, which had fallen this morning (towards 4,500% around 4:30 a.m.), is rising again with a ten-year bond rising to 4.63%, a level close to 4.65%, its worst level since November, the ‘2 years’ continues to flirt with 5.00% (at 4.9900%).
No ‘macro’ figures to liven up the session this Friday, the start of next week will however be very busy in US ‘stats’ (production, inflation).
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