2023-08-22 20:02:37
The New York Stock Exchange saw its enthusiasm melt away on Tuesday, carried the day before by the technology sector, the indices ending in a mixed way while bond rates remain high.
The Dow Jones index fell 0.51% to 34,288.83 points, the Nasdaq, with strong technological coloring, nibbled 0.06% to 13,505.87 points while the broader S&P 500 index lost 0.28 % at 4,387.55 points.
Monday’s session, when bond yields had climbed to highs since 2007 without preventing a sharp rise in the technology sector, was an unusual combination.
“What happened was we saw a rebound when the market was oversold,” Steve Sosnick of Interactive Brokers told AFP. “And as so often in these bullish sessions, traders found themselves overexposed because the enthusiasm is contagious,” he continued, adding that today’s session was “more restrained.”
Risk appetite waned ahead of “two events that have the potential to move markets: Nvidia’s earnings on Wednesday and Fed Chairman Jerome Powell’s speech on Friday,” he said. the expert.
Nvidia, maker of highly sought-following graphics processors for the development of artificial intelligence, will announce its quarterly results on Wednesday following the close.
The title of the fourth market capitalization fell 2.77% on Tuesday to 456.68 dollars following having soared the day before by more than 8%.
Bond yields remained firm following solidly hitting their highest since 2007. Ten-year yields thus stood at 4.32% once morest 4.33% at the close on Monday and those at two years now exceeded 5% at 5 0395% around 8:20 p.m. GMT.
On the front of indicators, sales of existing homes, which represent the bulk of the real estate market in the United States in volume, fell once more in July, more than expected by the markets. They fell by 2.2% at an annualized rate but prices remained on the rise.
Listed sports equipment chain Dick’s Sporting Goods slumped 24.15% following warning that its profits would be lower than expected for the full year, citing a more cautious consumer as well as the abundance of flights.
Another retailer, the department store chain Macy’s, also plunged (-14.05%).
The brand saw its profits decline and its quarterly sales melt by 8%, even if they exceeded analysts’ expectations. “The consumer is cutting back on discretionary spending which is clearly affecting Macy’s,” GlobalData noted, as these department stores primarily sell apparel, home furnishings and beauty products.
Regional banks had a new bout of weakness following a series of downgrades by Standard & Poor’s Ratings. Thus Zions Bancorporation, Comerica, First Horizon dropped more than 4%.
The trend has rubbed off on the big banks. JPMorgan, Bank of America, Citigroup and Wells Fargo all lost more than 2%.
Witnessing the volatility of securities newly present on the stock market, the Vietnamese electric vehicle manufacturer VinFast, introduced on Wall Street last week via a SPAC, doubled in value on Tuesday. The stock soared 108% to $36.72 following being listed at $22 and on a rollercoaster ride.
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