2023-09-25 20:09:19
The New York Stock Exchange ended higher on Monday, offering a small technical rebound following a difficult week, in the absence of company news or major indicators.
The Dow Jones gained 0.13%, the Nasdaq index gained 0.45% and the broader S&P 500 index appreciated by 0.40%.
The session started in the red, under the effect of a new surge in bond rates.
The yield on 10-year US government bonds rose to 4.54%, a first in almost 16 years, compared to 4.43% at Friday’s close.
Although they favor the hypothesis of a monetary status quo until the end of the year, operators have not ruled out the idea of a final rate increase, a scenario to which they grant a probability of ‘around 40%.
For Peter Cardillo of Spartan Capital, the market finally rebounded to a technical threshold of the S&P 500, or 4,325 points, which triggered a wave of buying. From then on, the New York market “ignored bond rates and the acceleration of the dollar”, according to him.
The movement benefited semiconductor manufacturers AMD (+1.23%) and Qualcomm (+2.55%), battered last week. The latter had lost nearly 10% since mid-September.
Another winner of the day, the microprocessor designer Arm (+6.08%), introduced to the Stock Exchange in mid-September, which remained for six negative sessions in a row.
Wall Street ignored two poor American indicators, which showed a slowdown in activity in the Chicago (in August) and Dallas (in September) regions.
Investors are already focused on the publication later this week of major data, in particular, on Thursday, the PCE consumer price index, the most followed by the American central bank (Fed).
On the stock market, Amazon was praised (+1.67%), following unveiling a major investment in the so-called generative artificial intelligence (AI) start-up Anthropic.
According to the Wall Street Journal, the Seattle group will immediately inject $1.25 billion and might increase its stake to $4 billion depending on certain criteria.
Netflix (+1.31%) and Paramount Global (+0.16%) benefited from the agreement in principle between the Hollywood screenwriters’ union and the studios, which should end a strike that began almost five months. Disney (-0.30%) and Warner Bros Discovery (-3.96%), on the other hand, finished in the red.
HP was sanctioned (-1.76%) following the sale, by Berkshire Hathaway, Warren Buffett’s holding company, of 4.8 million shares of the computer manufacturer last week, according to a document published Friday by the regulator stock exchange, the SEC.
Boeing (-0.54%) benefited from the order placed by Air Canada, which purchased 18 787-10 Dreamliner aircraft, the first of which must be delivered at the end of 2025. At the list price, the order represents approximately six billions of dollars.
The Rite Aid pharmacy chain plunged (-33.89%) following the Wall Street Journal reported discussions between the group and its creditors with a view to filing for bankruptcy. According to the daily, the Philadelphia company has proposed closing 400 to 500 branches as part of a backup plan.
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