(CercleFinance.com) – The New York Stock Exchange is unable to extend its rebound of the two previous sessions this Thursday, in an environment on the contrary marked by increased volatility despite the approach of Christmas.
At the end of the morning, the Dow Jones dropped 1.3% to 32,940.5 points, while the Nasdaq Composite dropped 2.6% to 10,427.9 points.
The markets have experienced a new surge of fever with the upward revision of the US growth figures in the third quarter, a statistic which reinforces the scenario of further rate hikes.
According to the third estimate provided by the Department of Commerce, the GDP of the United States increased by 3.2% at an annualized rate over the past quarter, whereas it had announced growth of 2.9% in the second estimate and of 2.6% in very first reading.
Concern over the continuation of the monetary tightening orchestrated for many months by the Fed outweighs the hope of observing a soft landing for the economy, which weighs on market sentiment.
With the return of risk aversion, US Treasury bond yields are retreating, with the 10-year yield falling to 3.65% after flirting with 3.70% yesterday.
The dollar, meanwhile, strengthened around 1.06 against the euro.
Another bearish factor, the trend is weighed down by the decline in oil prices, the price of a barrel of American light crude oil (West Texas Intermediate, WTI) returning towards 78 dollars after its spectacular recovery in recent days.
Consequently, the energy sector fell by 1.8% and the oil companies Chevron and ExxonMobil lost 1.5% and 2% respectively.
All 11 S&P 500 sector indices lost ground on Wednesday, primarily technology stocks (-3.2%), with heavy losses for stocks such as Tesla (-5.8%), AMD (-6 .4%) or Nvidia (-6.5%).
With all these ups and downs, the day is much more irregular than the last few days and the CBOE’s VIX index measuring the volatility of the S&P 500, often called the ‘fear index’, jumped almost 7% not far from 21.5 points .
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