Market Review: Stock Market Indices Fall Amid Nvidia’s Results and Federal Reserve Intervention

2023-08-24 21:56:15

(Photo: Getty Images)

MARKET REVIEW. After the euphoria of Nvidia’s results, the New York Stock Exchange fell back into the red on Thursday, on the eve of an intervention by the boss of the American central bank (Fed) at the meeting in Jackson Hole, in the United States.

Canada’s main stock index fell more than 100 points on Thursday amid widespread weakness.

To (re)consult market news

Stock market indices at closing

In Toronto, the S&P/TSX lost 103.96 points (-0.52%) to 19,775.83 points.

In New York, the S&P 500 fell by 59.70 points (-1.35%) to 4376.31 points.

The Nasdaq decreased by 257.06 points (-1.87%) to 13,463.97 points.

The DOW lost 373.56 points (-1.08%) to 34,099.42 points.

The loon fell by US$0.0021 (-0.29%) to US$0.7365.

The oil lost US$0.17 (-0.22%) to US$78.88.

L’or lost US$2.40 (-0.12%) to US$1,944.70.

The bitcoin fell from US$233.28 (-0.89%) to US$26,089.98.

Context

“The market fell once the euphoria around Nvidia evaporated”, the star of the artificial intelligence sector which exploded the most optimistic forecasts when publishing its quarterly accounts on Wednesday evening following the close, underlined Peter Cardillo from Spartan Capital.

L’action Nvidia (NVDA)which has been gaining momentum since the start of the week, ended flat on Thursday (+0.10%) at 471.63 dollars following having come close to 500 dollars at the opening.

“I believe investors are positioning themselves for Fed Chairman Jerome Powell’s speech on Friday” at the central bankers’ meeting in Jackson Hole, Wyoming, Cardillo said.

“In my opinion, there will be a little for everyone, for hawks like doves”, calculated the analyst using the language of specialists who evoke on the one hand the supporters of a strict monetary policy [avec des taux élevés pour lutter contre l’inflation] and on the other, those in favor of more flexibility to preserve employment.

For LBBW’s Karl Haeling, so far the market has expected Mr Powell to argue for “higher rates for longer”.

“But since then, greater economic doubts” – especially following mixed results on the side of retailers – “might suggest a more balanced monetary policy message that might encourage purchases” on the stock market, said the specialist.

On the bond market, yields on ten-year Treasury bills have risen a little, which is generally not favorable for equities.

Around 4:30 p.m., they stood at 4.23% once morest 4.19% the day before, those at two years rose to 5.02%.

The dollar strengthened once morest the euro (+0.52%) as once morest the main currencies.

As for the indicators, a new sign of the resilience of the job market in the United States, new weekly applications for unemployment benefits fell from 10,000 to 230,000, a figure lower than analysts’ expectations.

At the same time, a drop in transport orders, particularly air transport, weighed on durable goods orders, which fell 5.2% in July.

The aircraft manufacturer Boeing (BA) has also announced that it has identified a defect on an element of the 737 MAX which will once more disrupt deliveries of its flagship aircraft. The title fell almost 5% to 217 dollars.

The telephone operator T-Mobile (TMUS) slipped 2.21% to US$133.32 as it announced the upcoming cut of nearly 5,000 jobs, or almost 7% of its workforce. The group will take a pre-tax charge of $450 million for this, but the company has nonetheless confirmed its targets for its 2023 financial year.

Dollar Tree (DLTR)the low-cost chain, fell by almost 13% reflecting, with disappointing results, the worries, mentioned by many retailers, over cautious consumers and an upsurge in theft.

The struggling ready-to-wear chain Gap (GPS), which closed down 1.24% to $9.53, lost as much in electronic trading following disappointing results. Quarterly sales fell 8% year on year.

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