2023-06-29 13:50:27
The New York Stock Exchange moved in dispersed order Thursday at the start of the session, the indices being subject to high volatility as the end of the semester approaches, which encourages institutional investors to reposition at the last minute.
Around 2:25 p.m. GMT, the Dow Jones gained 0.58%, the Nasdaq yielded 0.14% and the broader S&P 500 index rose by 0.15%.
“In recent days, we have seen the market oscillate between red and green at the open,” said Quincy Krosby of LPL Financial. “But so far the indices are holding up and we’re still above the important threshold of 4,300 points for the S&P 500.”
Initially, the market had welcomed a series of indicators confirming the strength of the American economy.
Gross domestic product (GDP) growth was revised to 2% year on year in the first quarter in the United States, once morest 1.3% previously, above the 1.6% expected by some economists. In addition, new weekly jobless claims fell to 239,000 once morest 264,000 the previous week.
“This figure reminds us that the job market remains tight, which increases the probability of a rate hike by (the American central bank) next month,” commented Nancy Vanden Houten, of Oxford Economics, in a rating.
After doubting the Fed’s offensive rhetoric, operators are gradually aligning themselves with its message and now attribute a probability of more than 40% to the scenario of two further rate hikes by the end of the year.
The bond market reacted badly to the prospect of this new monetary tightening. The yield on 10-year US government bonds soared to 3.85%, once morest 3.70% the day before, the highest in three months.
On the equity side, the New York market was shaken by rebalancing of positions as the end of the semester approached, an important date for institutional investors and portfolio managers.
“You see a lot of weird things at the end of a quarter,” said Maris Ogg of Tower Bridge Advisors. “We will not have a clear image of the market for a few days and the return of the weekend of July 4”, national holiday in the United States, added Quincy Krosby.
The giant capitalizations of tech fell under the effect of profit taking, whether Amazon (-1.02%), Alphabet (-1.20%) or Microsoft (-0.69%).
Even semiconductor maker Micron suffered (-4.06%), despite better-than-expected earnings, enthusiastic industry commentary and appetite for artificial intelligence.
The banking sector was in good shape following the publication by the US central bank (Fed) of the results of annual stress tests (stress tests), which were better than last year for all of the 23 major US banks.
Bank of America (+2.60%), Wells Fargo (+3.43%) or JPMorgan Chase (+2.71%) were all wanted.
The ghost BlackBerry was sought following (+ 11.37%), following having doubled its revenues over one year thanks to a strategic repositioning which moved the group from smartphones to cybersecurity software in particular.
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