2023-06-28 20:52:39
The New York Stock Exchange ended in dispersed order on Wednesday, slightly cooled, following the strong rebound of the day before, by the words of the boss of the American central bank who does not exclude two future rate hikes in the coming months.
The Dow Jones index lost 0.22% to 33,852.66 points and the S&P 500 remained almost stable at 4,376.86 points (-0.04%) while the Nasdaq advanced 0.27% to 13,591, 75 dots.
Investors were moderately affected by statements by Jerome Powell, Chairman of the Federal Reserve, the US central bank (Fed).
At a conference of central bankers in Sintra, Portugal, Mr Powell said the economic situation was “far from a return to normal”.
“We think there will be further tightening” of monetary policy, to curb inflation, underlined the chairman of the Fed. “I do not rule out the possibility of an increase in two successive meetings,” he added.
“He basically repeated what he had already said,” said LBBW’s Karl Haeling. “I think the market was rather taking a break,” following Tuesday’s sharp rise, “because it’s the end of the quarter and there has been a rebalancing of the portfolios,” the analyst told AFP.
On the bond market, ten-year rates fell to 3.71% once morest 3.76% the day before.
We are also approaching the long weekend of the July 4 national holiday and the exchanges are lessening.
Some tech stocks took the hit following reports from the Wall Street Journal that the Biden administration plans to limit exports of artificial intelligence (AI) chips to China.
Asked by AFP, the Commerce Department has not commented yet.
But the stock of Nvidia, the specialist in super-powerful microprocessors researched by AI, nosedived, losing 1.81% to $411.17. The group derives some 20% of its revenue from China, noted Edward Moya analyst for Oanda.
Intel dropped 1.55% and AMD 0.20%.
The big banks were down slightly as they waited for the Fed, which regulates the banking sector, to release the results of the stress tests just following the market close. Bank of America concluded down 0.58%, Citigroup 0.34% and Wells Fargo 0.71%.
The main American banks have sufficient liquidity to withstand a “severe recession” while being able to continue to grant loans, the Fed estimated following tests which concerned 23 large banks.
Elsewhere on the stock exchange, Netflix had the wind in its sails (+3.06%) while Disney lost 0.26%.
The food group General Mills, which sells the brands Cheerios, Lucky Charm and Häagen-Dazs, fell by 5.17% following mixed results in the fourth quarter. While profits have increased thanks to inflation, this price increase has increased sales volume and production costs.
Meal delivery company DoorDash climbed 2.31% to $76.49 following reforming its delivery system.
The action of the space tourism firm Virgin Galatic benefited (+9.22%) from the prospect of a manned launch on Thursday, its first commercial flight sponsored by the Italian Air Force.
The Californian start-up Joby Aviation, which wants to develop an all-electric flying service, soared 40.22%. The company has announced the appointment of a Toyota executive, Tetsuo Ogawa, boss of the Japanese automaker in North America, to its board of directors.
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