Wall Street: Wall Street continues to fall, pending US employment

(Reuters) – The New York Stock Exchange recorded a second consecutive session of declines on Thursday amid continued drag from rising bond yields, Fed monetary policy tightening and recession fears, on the eve of the report monthly on employment in the United States.

The Dow Jones index fell 1.15%, or 346.93 points, to 29,926.94 points.

The broader S&P-500 lost 38.76 points, or 1.02%, to 3,744.52 points.

The Nasdaq Composite fell 75.327 points (-0.68%) to 11,073.311 points.

Ten of the eleven S&P sector indices ended in the red, starting with real estate, which fell 3.3%. Only the energy compartment rose, by 1.8%, thanks to the increase in crude prices.

The New York Stock Exchange opened higher after the publication of the statistics for weekly jobless claims in the United States, up to 219,000 against 190,000 the previous week, which prompted traders to hope for an easing of the policy of raising unemployment rates. Federal Reserve rate.

But the enthusiasm quickly died down. “It’s not in itself a big increase and certainly not bad enough yet to really talk seriously about a change of course for the Fed,” commented David Russell, vice president of Market Intelligence at the TradeStation Group. .

An opinion reinforced at the start of the session by the chairman of the Federal Reserve of Minneapolis, Neel Kashkari, who stressed that the American central bank had “still work” to curb inflation and that it was “very far” from being able to take a break from raising interest rates.

The yield on ten-year US Treasuries, which had fallen on the back of the statistics, rose again, reaching a one-week high and weighing on growth stocks that are particularly sensitive to rate expectations such as Meta Platforms or Nvidia.

Due on Friday, the Labor Department’s monthly jobs report should help traders see more clearly the pace of the Fed’s next rate hikes. Money markets are currently pricing in an 85% probability of a 75 basis point hike on 2 November.

Tesla fell 1.11% as Apollo Global Management and Sixth Street Partners, which considered helping to fund Elon Musk’s takeover bid on Twitter, ended talks, according to two people familiar with the matter. case.

Alphabet Inc ended near flat after Google launched new phones and a first smartwatch.

(French version Jean-Stéphane Brosse)

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