2023-09-28 20:27:07
New York (AFP) – The New York Stock Exchange ended higher on Thursday, relieved by the combined decline in bond rates, oil prices and the dollar, without looking further ahead.
Published on: 09/28/2023 – 22:27
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The Dow Jones rose 0.35%, the Nasdaq index rose 0.83% and the broader S&P 500 index gained 0.59%.
“Throughout this week, investors were on edge because the (American) 10-year rate was making record highs. And today, the three biggest factors unfavorable to the market in recent times, namely rates, bond prices oil and the dollar have all lost ground,” said Angelo Kourkafas of Edward Jones.
After jumping to 4.68%, a first in almost 16 years, the yield on 10-year US government bonds eased to 4.56%, a major drop in a market where variations are often measured in basis points (0.01 percentage points).
The prices of black gold fell significantly, with the barrel of American West Texas Intermediate (WTI) dropping more than 2%.
As for the dollar, it has finally taken a break, following trampling on most of the world’s major currencies.
“It’s a rebound of relief,” described Angelo Kourkafas.
As is often the case, the tech giants led the way, whether Nvidia (+1.46%), Meta (+2.09%) or Alphabet (+1.27%).
However, operators do not plan beyond this small burst.
“We’re walking on a tightrope right now,” summed up Bryant VanCronkhite of Allspring Global Investments. “This is an unprecedented time in terms of the number of things impacting the economy.”
For the manager, the central scenario is no longer that of a soft landing, long hoped for by the American central bank (Fed) and Wall Street.
The sudden tightening of credit and the slowdown in public spending constitute “a more difficult context” than the one which made a gradual and smooth deceleration possible. “And investors need to prepare for it.”
On the stock market, Boeing suffered (-2.57%) following the general manager of the low-cost airline Ryanair, Eddie Wilson, reported a delay in the delivery of aircraft ordered from the American manufacturer.
Semiconductor manufacturer Micron struggled (-4.41%), as investors worried regarding the forecast for a higher-than-expected loss for the current quarter, even though the Boise (Idaho) group did better than expected in the previous quarter.
Symbol of the wave of “meme stocks”, these actions propelled by small investors at the start of 2021, the video game store chain GameStop did not benefit (-1.81%) from the appointment to the position of general manager of the entrepreneur Ryan Cohen, appreciated by the small carrier community.
The Accenture consulting group was sanctioned (-4.33%) for its quarterly turnover lower than analysts’ expectations and sales forecasts considered disappointing for the current quarter.
The specialist in exercise bikes and connected treadmills Peloton started in a sprint (+5.37%) following the announcement, Wednesday following the stock market, of a five-year partnership with the sports equipment manufacturer Lululemon Athletica (-0 .04%), which has become a cultural reference for its yoga pants.
After initially seeking to compete with each other, the two houses will remain on their core business and sell their partner’s products.
© 2023 AFP
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