2023-08-03 21:08:10
The Dow Jones index fell 0.19% to 35,215.89 points, the tech-heavy Nasdaq dropped 0.10% to 13,959.71 points and the broader S&p 500 index lost 0.25% to 4,501. .89 points.
More than the rating of the United States lowered Tuesday evening to AA + by the financial rating agency Fitch, instead of triple A, it is the reaction of the bond market which “disturbed the actions” these last two sessions, explained Karl Haeling, LBBW Bank Analyst.
The yield on the 10-year Treasury bill, which moves inversely to the price of the bond, soared to 4.19%, the highest since October, once morest 4.07% the day before and 3.96 % on Monday before Fitch’s announcement.
The downgrading of the US debt rating, for the second time in history following that of 2011 by S&P, “especially drew attention to the US budget deficit which will be much larger than expected”, estimated Karl Hailing.
On Monday, before Fitch published its note which surprised the market like the American administration, the Treasury had indeed revealed its immense borrowing projections for the next three months: 1,000 billion dollars, 400 billion more than is not expected. the markets awaited there.
In addition, the US Treasury also announced on Wednesday a flood of issues for next week to refinance maturing bonds.
“Investors are going to have to absorb more bonds (long-term debt) and notes (medium and short-term debt) over the next few quarters,” Karl Haeling warned, which prompted the sale of these bonds, making lower their prices but raise their rates.
In addition, the bond market suffered “the effect of strong macroeconomic data in the United States and the rate hike by the Bank of England”, noted Peter Cardillo, analyst at Spartan Capital.
The number of jobs created in the private sector, published two days before the official US employment figures on Friday, were much stronger than expected for July (324,000). In addition, the Atlanta Fed raised its growth forecast for the third quarter to 3.9%, a very dynamic expansion for the world’s largest economy.
On the stock market, investors eagerly awaited the results of Amazon (+0.55% closing at 128.91 dollars) and Apple (-0.73% at 191.17 dollars).
After the close on Wall Street, e-commerce giant Amazon far exceeded expectations by posting a profit of $6.7 billion for the second quarter, thanks to online sales and its cloud computing business. distance).
Its stock, which has already risen by some 50% since the start of the year, soared 7.50% in electronic trading following the stock market closed. Its turnover swelled by 11% year on year, reaching 134.4 billion dollars from April to June.
Apple’s quarterly performance was less well received (-0.78% in post-closing trading). If its profit in the third quarter increased by 2.3% to 19.9 billion dollars, the turnover of the iphone maker fell by 1.4% over one year.
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