(CercleFinance.com) – Wall Street moved flat for a long time before starting a slight consolidation in the afternoon.
The S&P500 dropped 0.26% to 4,388 points, the Dow Jones ended almost at its lowest with -0.50% after moving all day in the red.
Note or heavy decline in the banking sector (-3%) and in particular regional banks.
The Nasdaq Composite climbed 0.07% to 13,506, its lead having clearly melted in the wake of Nvidia which recorded a historic record at $481.8 (+2%) at the start of the session before reversing the steam and losing -2 .8% to $45,617.
The ‘techno’ index was also penalized by the decline of Illumina -2.7%, Palo Alto Network -2.5%.
The easing of the initial rates on the T-Bonds was not very far (4.31%) and in the end, it is a virtual stability (4.33% against 4.3400% the day before) which is essential despite the 2.2% decline in sales of existing homes in the United States last month (July).
It is a significant decline but it is not a collapse with 4.07 million transactions at an annualized rate and in seasonally adjusted data (CVS), according to the national federation of real estate agents (NAR).
The median sale price reached $406,700, up 1.9% over one year: we are very far from a ‘2007’ scenario where the real estate bubble bursts and causes a sharp drop in prices.
The Dollar strengthened over the hours: it gained 0.4% against the Euro, 0.2% against the Swiss Franc and 0.3% against the Yen.
Jerome Powell will speak on Friday but no dramatic announcement is expected.
‘Money market expects US interest rates to stay above 5% for much of 2024, supporting the dollar (no prospect of recession, so no rate cuts to come)’, explain the DeftHedge teams.
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