(CercleFinance.com) – Wall Street ended down this Tuesday but not at the lowest of the day while solid ‘PMI’ and an increase of almost +2% in oil are raising doubts about the timetable for a drop in rate by the FED (an easing in June, however, remains anticipated at more than 60%).
The Dow Jones fell 1% to 39,170, the S&P-500 -0.7%, to 5,205 and the Nasdaq Composite lost 0.95% to 16,240 (compared to -1.5% at the day’s low).
The Nasdaq was weighed down by Tesla -4.9% (1st drop in quarterly deliveries in 4 years), Sirius -3.7%, Illumina-3.2%, AMD -2.5%, KLA -2.4 %, Cisco -1.4%, Micron -1.3%, Nvidia -1% and Intel (-1.3% but -4.3% after closing with the revelation of an operating loss of -$7 billion on its ‘chip’ foundry activity).
Some stocks held up well, notably oil companies (a barrel set a new annual record at $85.55) with Marathon +3.5%, Valero +2.7%, Exxon +2%, EOG +1.9%, Conoco +1.6%, Occidental +1.3%.
Heavy drop in airlines and cruise lines, DR Horton -3.9%, Pulte -3.6%, Beazer Homes -3.3%, Lennar -3.1%.
Wall Street was put under pressure by a sudden tension in rates: +3 Points on US T-Bonds (4.3600% in the end) which flirted with 4.40%, a phenomenon which is in the wake of a 6-month high for oil with a barrel of WTI crossing $85.5 in New York.
On the statistics front, orders to American industry recovered by 1.4% in February 2024 (after -3.8% in January), according to the Department of Commerce.
For their part, deliveries by American industry also increased by 1.4% in February compared to the previous month. Finally, as inventories increased by 0.3%, the inventory-to-delivery ratio decreased from 1.49 to 1.47 from one month to the next.
Markets will be paying attention to the speech by Jerome Powell, Chairman of the Fed, who will speak on Wednesday about the economic outlook at a forum organized by Stanford University (California).
A new episode of tensions between Israel and Iran is also driving up oil prices and safe haven assets following strikes carried out by the IDF on the Iranian consulate in Damascus, which left several dead (a first in history: no consulate has ever been targeted and destroyed, even in times of war).
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