(CercleFinance.com) – The New York Stock Exchange interrupted its bull run of the last few days on Wednesday, penalized by the uncertainty surrounding the outcome of the mid-term elections, which is reflected in a rise in bond yields.
At the end of the morning, the Dow Jones fell 0.8% to 32,885.6 points, while the Nasdaq Composite dropped 1.2% to 10,491.8 points.
The indecision as to the results of the elections organized the previous day prevented Wall Street from continuing its progress in recent sessions and resulted in an increase in volatility.
If the Republican Party now seems well assured of holding the majority in the House of Representatives, the Democratic camp seems just as well placed to keep the Senate.
‘The control of the Senate still remains very uncertain, with many duels still far too tight for us to be able to advance on the content of the results’, underline analysts from Wells Fargo.
This uncertainty brings to the fore the old adage that markets hate uncertainty, as illustrated by the current rise in the CBOE’s volatility index, nicknamed ‘the fear index’ (+0.1% at $25.6).
Another reason for concern for the markets, bond yields – which had been on a downward trend for several weeks – are starting to rise again, with a 10-year paper which has returned beyond 4.17%.
Side values, Disney drops 12% after unveiling last night quarterly results well below analysts’ forecasts.
Meta climbs by more than 7% while its leader and founder Mark Zuckerberg has expressed his desire to reduce the workforce of his group by some 13%, which amounts to making 11,000 layoffs.
Tesla is falling again (-1.5%) following the announcement by its co-founder and CEO Elon Musk of a sale of securities representing nearly four billion dollars. Its share price has lost more than 50% over 12 months.
The only two statistics on the program of the day being the stocks of American wholesalers, then the weekly oil reserves in the United States.
Wholesale inventories rose 0.6% in September sequentially, according to the Commerce Department, after rising 1.4% the previous month.
On the oil stocks side, the data published by the US Energy Information Agency (EIA) shows crude oil reserves up 3.9 million to 440.8 million barrels.
This statistic has little impact on the price of American light crude oil (WTI), which accentuates its decline (-2.5%) to 86.7 dollars a barrel.
In this context, the dollar is regaining a tiny bit of ground to trade around 1.005 against the euro.
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