2023-09-11 20:02:09
The New York Stock Exchange ended up on Monday, bathed in a lighter atmosphere, marked by a return of appetite for risk, which benefited volatile stocks.
The Dow Jones gained 0.25%, the Nasdaq index gained 1.14% and the broader S&P 500 index gained 0.67%.
The session was put on the right track by a note from Morgan Stanley on Tesla.
The bank’s analysts estimate that the Dojo supercomputer, developed by the manufacturer to improve its autonomous driving software, could add more than $500 billion to the company’s value, and have raised their price target by 60% .
Tesla CEO Elon Musk announced in June that the firm planned to invest $1 billion in the project by next year.
The manufacturer’s action, whose value has already doubled since the start of the year, gained 10.09% on Monday.
The increase in recommendation “certainly” helped the indices, according to Jack Ablin, of Cresset Capital, who also noted the rebound of the Shanghai Stock Exchange, which had been suffering for several days.
For the analyst, operators “have taken a fresh look at China”, after weeks of worrying about a sluggish economy, far from the expected recovery coming out of the pandemic. The market “feels that (the Chinese government) is trying to stimulate growth and investment.”
More generally, “it was a day favorable to risk and investors went to tap into the most speculative corners of the market”, according to Jack Ablin, partly also motivated by the prospect of a few good deals.
Several giant technological capitalizations, such as Amazon (+3.52%) or Meta (+3.25%), rode the wave, as did much more volatile stocks, such as BlackBerry (+14.47%) or Rivian (+1.34%).
The New York market also praised Qualcomm (+3.90%), driven by a new contract to supply Apple, for three years, with its new modems intended to optimize the performance of the 5G network, which will be integrated into iPhones.
RTX (formerly Raytheon) was one of a few stocks to finish significantly in the red (-7.88%) after reporting an exceptional charge of $3 billion in the third quarter linked to the defect of an engine component of its subsidiary Pratt & Whitney, which will require the inspection of 600 to 700 additional examples by 2026.
Disney (+1.15%) was sought after the announcement of a broadcasting agreement with the cable operator Charter Communications, which claims nearly 15 million cable subscribers in the United States. The entertainment giant had suspended the broadcast of its group’s channels, in particular ESPN (sport), for ten days.
Pfizer (-0.91%) and Moderna (-1.71%) did not take advantage of the green light from American health authorities to place on the market an updated version of anti-Covid vaccines, which protects better against the most virulent variants in circulation.
The bond market saw little activity after a turbulent week. The yield on ten-year US government bonds increased slightly, to 4.29%, compared to 4.26% at Friday’s close.
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