2023-06-14 20:52:57
Wall Street, à New York ( GETTY IMAGES NORTH AMERICA / SPENCER PLATT )
The New York Stock Exchange ended in disarray on Wednesday, digesting the Fed’s decision to leave rates unchanged while considering further hikes in the cost of credit this year.
The Dow Jones index lost 0.68% to 33,979.33 points while the tech-heavy Nasdaq advanced 0.39% to 13,626.48 points and the broader S&P 500 index remained almost stable. (+0.08%) to 4,372.59 points.
The American central bank (Fed) left its key rate as it is between 5.00% and 5.25%, to give itself time “to assess (…) the implications of monetary policy”, said explained the monetary institution in its press release.
But “almost all of the participants see it as probable that further rate hikes will be necessary this year to bring inflation down to 2%”, underlined Jerome Powell, the chairman of the Fed, evoking however “a moderate pace “.
Initially, stock indices turned red, with the Dow Jones losing up to 1.18% and the Nasdaq 0.60%, but this reaction was short-lived.
Similarly on the bond market, yields on two-year Treasury bills, the most sensitive to short rates, first climbed to 4.75% and then stabilized at 4.70% once morest 4.66% last year. day before. Those at ten years remained stable at 3.79%.
“Of course, the Fed has taken a hawkish tone. But that will depend on the data, so if inflation continues to moderate, I think there’s a chance the Fed will end its tight monetary policy,” Peter said. Cardillo of Spartan Capital Securities interviewed by AFP.
“In my view, it’s more a matter of either just one more upside or no upside at all and I believe that’s what the market thinks,” the analyst added.
For Ian Shepherdson, of Pantheon Macroeconomics, “two more increases this year seems excessive and unlikely”.
“By September, we think the case for further hikes will have weakened significantly, so a hike in July will be the last,” he said.
The good news of the day was the producer price index which fell in May by 0.3% compared to April, more than expected. These wholesale prices rose only 1.1% year-on-year, an additional positive signal for the Fed.
On the stock side, the Dow Jones was weighed down throughout the session by the poor performance of health insurance giant UnitedHealth Group (-6.40%) which indicated that its costs would increase because more elderly patients were scheduled. surgeries, delayed during the pandemic.
The decline in the largest market capitalization in the health insurance sector led to the fall of several other players such as CVS pharmacies (-7.76%) or Humana (-11.24%), another health insurance company. health insurance.
On the Nasdaq, AMD gained 2.25% as the semiconductor maker, determined to compete with Nvidia in the artificial intelligence market, was praised by investors for presenting a “super chip”.
The graphics card specialist Nvidia, which has largely exceeded the bar of 1,000 billion dollars in capitalization the day before, still climbed by 4.81% to 429.97 dollars.
The very volatile GameStop action, which had soared almost 11% the day before when its new president Ryan Cohen acquired $10 million worth of titles from video game stores, was offloaded by 4.64%.
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