(New York) The New York Stock Exchange ended lower on Friday, paralyzed by uncertainty linked to the Ukrainian crisis, but also to inflation and the monetary normalization of the American Central Bank (Fed).
Updated yesterday at 6:03 p.m.
The Dow Jones fell 0.68% to end at 34,079.18 points, the tech-heavy NASDAQ index lost 1.23% to 13,548.06 points, and the broader S&P 500 index 0. 72%, at 4348.87 points.
The major indices of the New York market recorded a second week of consecutive losses, “geopolitical concerns remaining the main negative catalyst” of Wall Street, wrote, in a note, analysts at Schwab.
According to a US official, Russia now has 190,000 men on the outskirts of Ukraine and on its territory, ready for an attack, including pro-Russian separatist forces.
Russian President Vladimir Putin said he was ready on Friday to “follow the path of negotiation”, while indicating that he would not accept compromise, asking the United States and NATO to accede to his requests.
Illustration of the current risk aversion the rate of 10-year US government bonds continued to fall, to 1.92% against 1.96% the day before, and especially 2.06% on Wednesday, its highest level since the end of July 2019. Bond rates move in the opposite direction to their prices.
“Given the downtrend we are on, it is very difficult to find buyers in this market,” said Maris Ogg, president of management company Tower Bridge Advisors. “So the sellers have the upper hand. »
However, she nuanced, the time is not to panic, but “you do not find many people to buy”. All the more so as Wall Street is preparing for a holiday weekend, which tends to limit positions.
US markets will be closed on Monday, a US holiday (Presidents’ Day).
The Dow Jones reached its lowest closing level in two and a half months on Friday (1er December). Since its peak, still closing, on January 4, the flagship index of the New York Stock Exchange has dropped 7.3%.
The trajectory is much sharper for the NASDAQ, which has lost 16.4% since its all-time high on November 22.
“We are not yet in the phase where we balance and where the actions become ridiculously cheap”, considers Maris Ogg.
Indices “are still being held back by the big caps, like Apple, but if the big ones start falling, it can drive the market much lower,” warned Adam Sarhan, founder and managing director of 50 Park Investments.
The expiration of options (financial instruments giving the possibility of buying or not buying a share at a given date and price) in February, on Friday, was likely to favor even more market movements.
Semiconductor maker Intel tumbled (-5.32% to $45.04), the day after an investor presentation in which the company said it did not expect a significant improvement in its margins before 2025 .
Harassed by the competition, Intel is seeking to reposition itself in the microprocessor market by investing heavily in new factories in Europe and the United States.
The group was accompanied in the fall by other technology stocks, such as the graphics card manufacturer Nvidia (-3.53%) or the software publisher Adobe (-3.31%).
The American chicken meat packaging and processing group Pilgrim’s Pride was fled (-13.65% to 24.03 dollars) after the renunciation of the Brazilian giant of the JBS sector to acquire the balance of the titles that it did not yet hold (he already controls about 80% of the capital).
The specialist in construction machinery, tractors and gardening equipment Deere reversed (-3.00% to 369.10 dollars) despite sales and profit exceeding expectations, accompanied by an upward revision of its revenue forecast for the current year.
The Moline (Illinois) group nevertheless saw its profit decline and reported rising costs, due in particular to wage increases after a strike this fall.
Toronto also down
The Toronto Stock Exchange closed lower on Friday, after a week marked by concerns over a possible Russian invasion of Ukraine.
The Toronto Stock Exchange’s S&P/TSX Composite Index rebounded in the afternoon, after showing signs of weakness earlier, before shedding those gains shortly before the close.
The flagship index lost 168.13 points to end the session at 21,008.20 points, compounding a 2.5% decline for the week as a whole, which was dominated by headlines over geopolitical tensions in Europe .
“The big worry for investors should be: what if something happens on Sunday or Monday and our markets don’t reopen until Tuesday? observed Colin Cieszynski, chief market strategist for SIA Wealth Management.
US markets will be closed Monday for Presidents’ Day, while the TSX will be closed for Family Day.
“But those who are worried about it may have finished their sales operations,” he observed in an interview.
All 11 sectors on the Toronto floor fell, led by health care and energy, which fell 3.5% and 2.4% respectively. The materials group returned 1.1%.
On the New York Commodities Exchange, crude oil prices rose 17 cents to US$90.21 a barrel, while natural gas fell 5.3 cents to US$4.38 a million. of BTUs.
The price of gold fell US$2.20 to US$1899.80 per ounce and that of copper fell slightly to US$4.52 per pound.
In the currency market, the Canadian dollar traded at an average rate of 78.53 US cents, down from 78.77 US cents the previous day.
The Canadian Press