2023-08-04 20:22:11
The Dow Jones fell 0.43%, the Nasdaq index returned 0.36% and the broader S&P 500 index fell 0.53%.
The New York market had started the session in the green, rather well disposed following the publication of the monthly report on American employment, according to which 187,000 jobs were created in the United States in July.
This is less than the 200,000 jobs expected by economists, “but it reassures that this job market, which was very tight, is calming down, very slowly”, commented Angelo Kourkafas, of Edward Jones.
The unemployment rate stood at 3.5%, lower than in June (3.6%).
The annoyance came from the average salary, which grew faster (+0.4% over one month) than economists expected (+0.3%).
A disappointment on the inflation front, but which is offset, according to Mr. Kourkafas, by the jump in productivity, announced the day before, for the second quarter, and which puts an end to a year and a half of stagnation.
“This report does not change the Fed’s (US central bank) anticipation of an imminent end to the tightening cycle, but provides new evidence that the economy is moving in the desired direction to slow inflation. “, estimated Charlie Ripley, of Allianz Investment Management.
The bond market seemed to validate this analysis, and rates fell sharply, following having risen since Tuesday.
The yield on 10-year US government bonds tumbled to 4.04% from 4.18% the day before closing.
However, despite the overall favorable reception to the employment report, the indices turned around during the session, to end in the red.
For Angelo Kourkafas, Wall Street continued, without frenzy, its movement of consolidation, triggered by the lowering of the note of the United States by the financial rating agency Fitch, Tuesday.
“There is not necessarily a reason to revise its opinion on the American debt, but it is a good excuse offered to the market to catch their breath”, summed up the analyst.
The New York market is already expecting fresh inflation news next week, with the CPI consumer price index on Thursday and the producer price index (PPI) on Friday.
On the side, Amazon was the indisputable star of the session (+8.27%), following smashing expectations for its quarterly profit and doing better than expected on turnover.
Still supported by its remote computing business (cloud), Amazon Web Services (AWS), the group has announced forecasts significantly higher than analysts’ projections for the current quarter.
Last to publish its results, Thursday, among the five ogres of “tech”, Apple denoted this season (-4.80%), with a turnover down (-1.4%) for the third quarter in a row, weighed down by the slowdown in iPhone sales (-2.4%).
In Friday’s session alone, the Apple brand lost more than $140 billion in market valuation.
The day was also marked by an explosion in the cybersecurity sector, triggered by the results of Fortinet (-25.07%), one of the heavyweights in this market.
The Sunnyvale (California) company has revised down its annual forecast, reporting a slowdown in demand for cybersecurity, with in particular a reduction in the average duration of contracts.
This communication bristled the market, which also attacked Fortinet’s rivals, particularly Palo Alto Networks (-8.06%), but also CrowdStrike (-4.48%).
The online payments specialist Block (ex-Square), led by former Twitter boss (now X), Jack Dorsey, plunged (-13.57%), analysts deeming the rise in forecasts on the year.
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