2023-08-02 16:27:00
(Photo: Getty Images)
MARKET REVIEW. The Toronto Stock Exchange retreated more than 300 points late Wednesday morning, while the major US indices also retreated.
The New York Stock Exchange opened lower on Wednesday, tense by the lowering of the United States’ rating by the Fitch agency, which gives it the opportunity to breathe, following several weeks of euphoria.
To (re)consult market news
Stock market indices at noon
In Toronto, the S&P/TSX fell 363.53 points (-1.77%) to 20,172.76 points.
In New York, the S&P 500 decreased by 59.97 points (-1.31%) to 4516.76 points.
The Nasdaq dropped 344.37 points (-2.41%) to 13,937.72 points.
The DOW fell from 227.92 points (-0.64%) to 35,402.76 points.
The loon retreated US$0.0044 (-0.5840%) to US$0.7490.
The oil was down US$2.06 (-2.5317%) to US$79.31.
L’or lost US$4.2001 (-0.2123%) to US$1,974.60.
The bitcoin rose by US$307.93 (+1.04%) to US$29,262.57.
Context
Fitch Ratings on Tuesday lowered the rating of the United States from AAA, the highest, to AA+, worrying regarding the successive political crises around the budget and the debt, the high level of which also worries the agency. Financial evaluation.
“There doesn’t seem to be any new evidence behind this decision,” commented Maris Ogg of Tower Bridge Advisors, “so it looks like the market is using it as an excuse to take a break.”
First targeted by this movement, the giant capitalizations of the technology sector, rockets from the stock market since the beginning of the year, from NVDA (NVDA, -3,00%) To Microsoft (MSFT, -1,69%)Passing by Meta (META, -2.05%).
Before that, “traders already had in mind that the actions had risen too much, too quickly, and were ripe for a correction”, abounded, in a note, Patrick O’Hare, of Briefing.com.
However, Fitch’s decision did not cause a stir. On the bond market, the yield on 10-year US government bonds tightened only slightly, to 4.09%, once morest 4.04% at the close the day before.
Investors still consider that “the United States will not default on its debt”, and keep in mind that “the US Treasury bond market is the largest and most liquid in the world, pegged to the reference currency” , the dollar, detailed Patrick O’Hare.
The trajectory of the New York market, listed in the red well before the opening, was not modified by the publication of the report by the firm ADP, according to which the American economy created 324,000 jobs in July.
This is almost double the 190,000 expected by economists.
The lack of reaction to this figure is explained in particular by the fact that since a change in methodology, in August, the ADP data “are impossible to anticipate and prove to be very unreliable”, underlined, in a note, Ian Shepherdson, from Pantheon Macroeconomics.
The real barometer of reference for Wall Street will be the employment report published Friday by the US government.
Despite the decline recorded by the market on Wednesday, Maris Ogg does not see the correction continuing, “because the results of companies tell us that the economy is relatively vigorous”, an impression confirmed by most recent macroeconomic indicators.
On the side, the semiconductor manufacturer AMD (AMD) was falling (AMD, -5,08%) despite results above the consensus, and optimistic forecasts for the segment of data storage centers (data centers), driven by artificial intelligence.
Tesla (TSLA) fell back sharply (TSLA, -1,86%)following the announcement of an investigation by the United States Highway Traffic Safety Agency (NHTSA) linked to reports of drivers claiming to have lost control of the steering wheel of their vehicle while traveling on the road.
The Italian car manufacturer Ferrari (RACE, -0,94%), listed in New York, did not benefit from better than expected quarterly results and the raising of its forecasts for the year. The new earnings projection is, however, only an alignment with those of the analysts.
The food group Kraft Heinz (KHC) retreated (KHC, -1.07%) also, following missing the sales target set by the market. The group significantly increased its prices (+11% over one year), but volumes fell, especially in the United States.
Starbucks was doing well despite falling short of expectations in the second quarter. If the international recorded a significant growth, the average price per order has marked time, falling even in China.
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