THE NEW YORK STOCK ENDS LOWER
NEW YORK (Archyde.com) – The New York Stock Exchange ended lower on Friday as recession risks in Europe following Gazprom’s announcement that the Nord Stream 1 gas pipeline would remain closed trumped hopes that the Federal Reserve would slow down. its rise in rates following the publication of the monthly report on employment in the United States.
In a sluggish market ahead of a three-day weekend due to Monday’s “Labor Day” in the United States, a configuration that prompted investors to be cautious, the Dow Jones index lost 1.07%, or 337.98 points, to 31,318.44 points.
The broader S&P-500 fell 42.44 points, or 1.07%, to 3,924.41 points.
The Nasdaq Composite fell for its part by 154.26 points (-1.31%) to 11,630.86 points.
Over the week, the Dow Jones and the S&P-500 fell around 3% and the Nasdaq more than 4%.
Wall Street had however spent the morning in positive territory following the publication of the employment report suggesting a slowdown in the labor market, and therefore potentially in inflation, which initially slightly alleviated fears of a strong Federal Reserve rate hike.
According to the CME’s FedWatch Barometer, markets now price the likelihood of the Fed making another 75 basis point rate hike in September at 64%, up from 75% on Thursday.
But once the employment figures had been digested, “investors probably realized that they weren’t heralding the end of the rate hike,” said Rick Meckler, partner at Cherry Lane Investments.
Gazprom’s decision not to restart the Nord Stream 1 gas pipeline as planned on Saturday at 01:00 GMT, following three days of maintenance work, has also served as a reminder of the fragility of the global economic situation.
The Russian energy company, which cited an oil leak affecting the operation of a turbine, did not provide any date for the resumption of flows to Germany, accentuating fears of energy shortages and economic recession in Europe this winter.
“Context is important,” said Zach Hill, head of portfolio management at Horizon Investments in Charlotte, North Carolina. “There has been some optimism over the European energy situation over the week, with long-term electricity prices falling almost by half and Germany’s gas stocks filling up to 80%, so we are seeing a small adjustment in positions, coupled with a sluggish Friday followingnoon on the eve of a long weekend.”
In this unfavorable context, the semiconductor manufacturer Broadcom pulled out of the game, gaining 1.66% following the publication of quarterly results and a sales forecast for the fourth quarter that exceeded expectations.
* The reminder of the session in Europe: [.EUFR]
* TO BE CONTINUED :
(Report by Chuck Mikolajczak, French version Tangi Salaün)