by Chibuike Oguh
NEW YORK (Reuters) – The New York Stock Exchange ended mixed on Tuesday, as bond yields rose, amid questions over the contours of the US Federal Reserve’s (Fed) easing of monetary policy. ), with a resilient economy and persistent inflation.
The Dow Jones index gained 0.17%, or 63.86 points, to 37,798.97 points.
The broader S&P-500 lost 10.41 points, or 0.21%, to 5,051.41 points.
The Nasdaq Composite fell 19.77 points (0.12%) to 15,865.25 points.
The Fed chairman said during the day that recent inflation data in the United States did not give central bank officials enough confidence to cut interest rates any time soon.
Jerome Powell added that the Fed may have to maintain high interest rates for longer than expected, while the markets were betting heavily a few weeks ago on a first rate cut in June.
Down this Tuesday, the S&P-500 and the Nasdaq showed a clear decline, of almost 4%, compared to the closing peaks recorded last month.
“People are trying to balance two opposing narratives – the growth of the US economy, which is doing really well, and at the same time inflation and interest rates, which are at some point going to become problematic for the stock market,” commented James St. Aubin, chief investment officer at Sierra Mutual Funds in California.
A report released Monday showed that U.S. retail sales rose more than expected in March, a sign of the resilience of the U.S. economy that helped push the yield on 10-year U.S. Treasuries to a record low. five-month record.
The real estate and utilities sectors particularly weighed on the S&P-500, while technology saw the biggest gain of the day.
On the values side, note the 2.5% increase in Morgan Stanley after having communicated quarterly results above expectations thanks to the rebound in revenues from its investment bank.
Bank of America, on the other hand, fell by 3.5% following the publication of a profit for the January-March period lower than consensus, due to the reduction in interest paid.
Johnson & Johnson fell 2.1%, for not having met analysts’ expectations for its quarterly results, the fault of disappointing sales of its flagship drug against psoriasis.
Tesla fell for a second consecutive session, by 2.7%, after reports that the electric vehicle manufacturer intends to lay off more than 10% of its employees around the world.
(Written by Jean Terzian)
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