(New York) The New York Stock Exchange ended a volatile session on Tuesday, where the NASDAQ plunged into negative territory after the Governor of the Bank of England hinted that efforts to stabilize the British bond market would cease. Friday.
Updated yesterday at 5:09 p.m.
The Dow Jones index climbed 0.12% to 29,239.19 points, the NASDAQ lost 1.10% to 10,426.19 points and the S&P 500 fell 0.65% to 3,588.84 points.
Tech stocks, highly interest-rate sensitive as they borrow heavily for growth, fell sharply after an intervention in Washington by Bank of England Governor Andrew Bailey.
The BoE has been trying to stabilize the British bond market in recent days, the volatility of which is putting the country’s pension funds in difficulty.
But the governor insisted that the BoE’s purchases of Treasuries were “temporary” and that pension funds had “three days” to rebalance their assets.
The NASDAQ widened its losses after the remarks and the pound fell sharply, losing 0.90% to 1.0955 dollars to the pound.
“U.S. stocks ended mixed after falling following news that the Bank of England had set a three-day deadline to end its bond-buying initiative,” analysts said. Schwab.
Trading had already been mixed for most of the session, as investors will watch Wednesday for the first information on US inflation with wholesale prices.
The publication of the US producer price index for September is indeed scheduled for Wednesday, that of consumer prices expected on Thursday and retail sales on Friday.
The rise in the CPI consumer price inflation index is expected to be still above 8% year-on-year, for the seventh consecutive month.
Bond yields on ten-year US Treasury bills resumed their ascent to 3.94% from 3.88%, close to their highest in 14 years.
To add to the general mood, the IMF cut its outlook for global growth.
“The worst is yet to come and for many people, 2023 will look like a recession,” IMF chief economist Pierre-Olivier Gourinchas said on Tuesday.
The Fund also lowered its growth forecast for China, the world’s second largest economy, whose expansion this year is expected to fall to 3.2%, the weakest in four decades.
On the stock market, the communication services (-1.64%) and information technology (-1.52%) sectors led the decline.
Meta (Facebook) dropped 3.92% to $128.54, Amazon 1.28% and Netflix plunged 6.82%. (-1.30%).
Semiconductor stocks continued to struggle following a new round of restrictions on Chinese technology.
Qualcomm lost 3.99%.
The banks (-1.30%), which will begin to announce their quarterly results on Friday, drank the cup like JPMorgan (-2.89%), Citigroup (-2.76%), Bank of America (-2.90%).
The big players in the “gig economy” such as Uber (-10.42%), Lyft (-12.02%) or the meal delivery company DoorDash (-5.99%) have unscrewed, shaken by the projects of the US administration to change the employee status of the employees of these companies.
American Airlines gained momentum (+1.74%) after announcing that its third quarter results would be better than expected thanks to strong sales around Labor Day, one of the most popular holiday weekends in the United States. United.