(CercleFinance.com) – Wall Street, which started the week and the month of June on a mixed note, ended without any further trend, if we rely on the closing score alone (the S&P500 gains +0.1% ).
But in reality, heaviness dominated a good part of the session and a few buybacks saved the situation between 9:30 p.m. and 10 p.m. (like Friday): no less than 66% of S&P500 stocks ended up in the red.
The Dow Jones crumbled by -0.3% but the Nasdaq gained +0.56%… while the Russell-2000 fell by -0.5%.
That’s 2 indices up and 2 down… but remove Nvidia and its +4.9% to $1,150 and you get 4/4 in the red.
Once again, the Nasdaq was kept afloat by the Nvidia stock alone: the company has just presented in Taiwan a new ‘GPU’ even more powerful than the very recent ‘Blackwell’ ($40,000 each, not yet delivered to customers) and named ‘Rubin’ (also dedicated to supporting the enormous computing need for ‘generative artificial intelligence’).
Note that the price of the British semiconductor manufacturer ARM (+5.5%) returned to $130, Micro recovered +2.5%, Meta +2.3%.
Note that Nvidia also compensates for the decline of -1.8% in Intel and -2% in AMD, and -3.2% in Dexcom.
Among the declining sectors, the oil companies end up far behind in the wake of ‘WTI’ (which fell by -4% towards $78 on the NYMEX) with Halliburton -5.3%, Diamondbak and Baker Hugues -4%, Apache -3.6%, NRG Energy -3.3%, Occidental Petroleum and Chevron -3%…
But it has no real impact on the ‘S&P’ because the entire oil sector does not reach the capitalization of Nvidia: we must add the entire mining sector.
And the volatility of oil is explained by the other ‘fact of the day’: bond yields relax from -12Pts towards 4.396%: the initial improvement of -5Pts before the opening of Wall Street has become more radical after the publication of the ‘ISM’.
Activity in the American manufacturing sector further contracted in May (economists were expecting a modest slowdown).
According to the monthly survey by the Institute for Supply Management (ISM) published this Monday, the index stood at 48.7 last month, compared to 49.2 in April, while the consensus was expecting an average index around 49.8.
The new orders sub-index remained in a contraction zone, at 45.4 in May compared to 49.1 in April, while that measuring production fell to 50.2 compared to 51.3 last month.
The paid prices sub-index fell to 42.4, from 45.4 in April, while that linked to employment increased to 51.1, against 48.6 the previous month.
Another big meeting of the week, the report on American employment – expected Friday – should confirm that the job market still remains solid in the United States.
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