(CercleFinance.com) – Session in 2 stages on Wall Street: resolute rise from 3:30 p.m. to 7:00 p.m., then slide-style descent over the last 3 hours, to close at the lowest of the day.
The S&P500 dropped -0.53% to 4,478, or -2.3% over the past week, the Nasdaq only lost -0.36% but fell -2.6% weekly.
The Nasdaq-100 ended almost unchanged (-0.02%), the surge in Amazon (+8.3% to $139.5, best closing since 08/19/2022) or Booking (+7, 9%) having compensated for the -4% decline of Apple then the plunge of Fortinet (-25%), Palo-Alto (-8.1%) or Microchip (-6.7%, capitalization fallen to 45, $4 billion against $46 billion for ST-Micro).
This heaviness at the end of the day cannot be explained by an about-turn in the US bond markets, which continued to improve until the final bell.
This reversal of Wall Street does not find very solid explanations, even after the fact.
T-Bonds eased -14Pts to 4.051% after flirting with 4.20% (the highest since October 2022) from 10:30 a.m. to 2:30 p.m.
The decline began with the publication of the US report on employment in the United States, which shows that the labor market is not overheating, the majority of jobs created being part-time, which is the characteristic summer jobs in the hotel/restaurant industry.
According to the NFP, the American economy will have generated only 187,000 non-farm payrolls in July, according to the Labor Department (DoL), a number lower than market expectations, like Jefferies which expected 235,000.
The unemployment rate fell by 0.1 point to 3.5% of the labor force, the labor force participation rate remained stable at 62.6% for the fifth month in a row, and income average hours increased at an annual rate of 4.4%.
In addition, job creations for the two previous months were revised downwards, from 306,000 to 281,000 for May and from 209,000 to 185,000 for June, ie a total revision balance of -49,000 for these two months.
Copyright (c) 2023 CercleFinance.com. All rights reserved.