(Reuters) – The New York Stock Exchange opened lower, weighed down by disappointing Uber forecasts and a rebound in bond yields, as investors exercise caution while awaiting more details on the Federal Reserve’s plans American (Fed) this year.
In early trading, the Dow Jones index lost 51.24 points, or 0.13%, to 38,833.02 points and the broader Standard & Poor’s 500 fell 0.36% to 5,168.87 points.
The Nasdaq Composite lost 0.62%, or 100.91 points, to 16,231.65.
American markets are catching their breath after the rebound observed since the start of the month, driven by a series of positive financial results in the first half, while the latest report on American employment, weaker than expected, has revived hopes for an upcoming drop in rates.
Operators estimate a 65% chance that the Fed will reduce its interest rates by at least 25 basis points in September, compared to 54% a week ago.
“The market has now priced in the Fed’s decision for the rest of the year, so the reaction function will be weaker going forward and investors will start to focus more on the economic backdrop and earnings.” , said Dylan Kremer, analyst at Certuity.
“Bond yields do not necessarily reflect the expected activity of the Fed (…) and this is mainly due to still resilient growth,” he added.
In terms of values, Uber lost 6.8% after disappointing expectations for its reservations in the first quarter and its reservation forecasts for the current quarter.
Large-cap technology stocks are also falling, with Tesla, Amazon and Alphabet losing between 0.37% and 1.1%, following a rebound in US 10-year Treasury yields, after five days of decline.
Rivian Automotive fell 7.9% despite better-than-expected results in the first quarter.
Reddit gained 4.32% after reporting quarterly revenue above consensus, driven by strong growth in the number of users and an increase in the advertising market.
(Written by Augustin Turpin)
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