(CercleFinance.com) – The New York Stock Exchange continued its decline on Friday morning, dragged down by the disappointing figure of the ISM manufacturing index, which further fuels fears about the health of the American economy.
At the end of the morning, the Dow Jones thus lost 0.8% to 30,529.9 points, while the Nasdaq Composite also lost 0.8%, to 10,940.5 points.
The markets were cooled from the start of the session by the publication of an indicator showing a new slowdown in the manufacturing industry in June.
The Institute for Supply Management (ISM) index fell to 53 last month against 56.1 in May and a level of 54.5 expected on average by economists, still under the effect of the difficulties of ‘supply.
The downward trend was also fueled by the sharp decline in the S&P Global manufacturing PMI index, which fell to 52.7, against 57 in May, thus returning to its lowest level since July 2020.
Another disappointment, construction spending fell by 0.1% in May, while they were expected to rise by 0.4%.
All these poor figures are in line with the scenario of an imminent entry into recession for the American economy by the end of 2023 now favored by a growing number of analysts.
Concerns about the growth of the US economy are leading investors to continue to find refuge in the bond market, where the yield on ten-year Treasury bonds is still falling towards 2.81%.
Recession fears do not weigh, however, on the New York NYMEX market, since the barrel of American light crude (West Texas Intermediate) advances by 1.4% to 107.3 dollars.
On the value side, Micron dropped nearly 6% after indicating during the publication of its quarterly results that demand had weakened and that the chipmaker planned to moderate its supply during the financial year. 2022-23
Outperforming the trend, Apple limits its decline to 0.2% as JPMorgan analysts say they are ‘less worried than the market’ about the performance of the technology giant.
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