(CercleFinance.com) – The New York Stock Exchange tipped into the red on Thursday morning, dragged down by the disappointing figure for the ISM services index, which is fueling some fears about the state of the economy.
Just over an hour before opening, the Dow Jones fell 0.3% to 33,792.7 points, while the Nasdaq Composite dropped 1.2% to 13,587.7 points.
Wall Street, whose three leading indices had opened higher, began to show heaviness following the publication of the ISM, which showed that growth had slowed in the tertiary sector in February.
The ISM services index fell to 56.5 last month from 59.9 in January, when economists on average had expected a rise to 61.
The most worrying decline is perhaps due to the employment sub-index, which fell from 52.3 to 48.5, and now stands below the 50-point threshold, i.e. i.e. in the contraction zone.
With the conflict in Ukraine weighing on growth prospects, this US statistic reflects growing concerns about a possible slowdown in activity.
Since the beginning of the week, investors have feared that the unrest in Ukraine will eventually cast a shadow over growth and inflation forecasts.
‘The Russian invasion of Ukraine will increase short-term stagflationary pressures’, warn the NN IP teams.
Concerns about the growth of the US economy are leading investors to continue to favor the dollar, which is trading at 1.1065 against the single European currency.
Side values, Intel yields 2.4% while Morgan Stanley downgraded its recommendation on the title, reduced from ‘weight online’ to ‘underweight’, with a price target reduced from 55 to 47 dollars.
Best Buy climbed 7.7% after announcing adjusted EPS down 22% to $2.73 for its fourth quarter and announcing a 26% increase in its quarterly dividend.
Honeywell rose 1.8% after reaffirming its guidance for the first quarter and full fiscal year 2022 at an investor conference.
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