PARIS (Reuters) – The New York Stock Exchange opened lower on Tuesday as investors tried to digest the latest macroeconomic data that reignited fears of a looming recession as the U.S. Federal Reserve’s meeting nears next week. urges caution.
In early trading, the Dow Jones index lost 44.69 points, or 0.13%, to 33,518.17 points and the broader Standard & Poor’s 500 fell 0.21% to 4,264.59 points.
The Nasdaq Composite lost 0.4%, or 53.26 points, to 13,176.16.
The Institute for Supply Management (ISM) monthly survey, released on Monday, showed growth in U.S. services sector activity slowed in May to 50.3 from 51.9 the previous month. . This brake should in principle be welcomed by the Fed in its fight against inflation, but it also bodes well for a possible recession when activity in the manufacturing sector is already contracting.
The Fed will make its decisions on interest rates on June 14, the day after the publication of US inflation figures for the month of May.
The CME Group’s FedWatch barometer assesses the probability of a status quo on rates in the United States at 76% next week, but this expected pause could be followed by a rise in the cost of credit by 25 basis points in July.
In values, Apple fell 0.85%, DA Davidson having lowered its advice to “neutral” the day after the opening of the brand’s global developer conference during which the Californian group presented a new reality headset mixed at $3,499, entering a market dominated by Meta (-0.26%). Needham also believes that Apple must buy Disney (+0.21%) to promote the adoption of this helmet.
Also in technology stocks, AMD is progressing thanks to Piper Sandler raising its price target to $150.
On the downside, Coinbase tumbled more than 17% as the Securities and Exchange Commission (SEC) launched legal action Tuesday against the largest U.S. crypto-asset exchange.
Exxon Mobil and Chevron fell 0.96% and 1.07% respectively on the back of a relapse in oil prices the day after a sharp rise linked to the announcement by Saudi Arabia of an additional drop in its production in July.
Ford is in the red following the recall of more than 125,000 SUVs and “trucks” in the United States due to a risk of fire in the engine compartment.
(Written by Claude Chendjou, edited by Blandine Hénault)
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