(CercleFinance.com) – Wall Street moved flat for a long time before starting a slight consolidation in the afternoon.
The S&P500 dropped almost 0.3% to just under 4,388 points, while the Dow Jones ended almost at the bottom with around -0.5% to 34,289 points after trading all day in the red.
Note the heavy decline in the banking sector (-3%) and in particular regional banks.
The Nasdaq Composite climbed less than 0.1% to 13,506 points, its lead having clearly melted in the wake of Nvidia which, after registering a historic record at $481.8 (+2%) at the start of the session, overturned steam to finally lose 2.8% to $456.7.
The ‘techno’ index was also penalized by the declines of Illumina -2.7% and Palo Alto Network -2.5%.
The initial relaxation of rates on T-Bonds was not very far (4.31% on the 10-year rate) and in the end, it is almost stable (4.33% against 4.34% the day before) which prevailed despite the 2.2% decline in sales of existing homes in the United States in July.
It is a significant decline, but not a collapse with 4.07 million transactions at an annualized rate and in CVS data, according to the national federation of real estate agents. The median sale price reached $406,700, up 1.9% over one year: we are very far from the scenario of 2007 when the real estate bubble burst and caused a sharp drop in prices.
On the foreign exchange market, the dollar strengthened over the hours to gain 0.4% against the euro, 0.2% against the Swiss franc and 0.3% against the yen.
‘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 coming soon)’, explains DeftHedge.
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