(New York) The New York Stock Exchange was down on Tuesday, continuing the consolidation that began on Friday after several weeks of gains, even if the technology sector resisted this corrective movement.
Around 10 am (Eastern time), the Dow Jones yielded 0.57%, the NASDAQ index dropped 0.32% and the broader S&P 500 index returned 0.47%. Markets were closed on Monday, a public holiday in the United States.
“We had a series of increases thanks to the hope that the Fed (American central bank) would take a break, which happened, and the appetite for artificial intelligence (AI)”, recalled Adam Sarhan of 50 Park Investments.
“But we went too far, too fast,” said the manager. “It’s not normal to see the NASDAQ go up eight weeks in a row. The market is therefore ripe for a correction. The question is how big and how long. »
The corrective movement could be accentuated by the approach of the end of the quarter, which often encourages institutional investors to take profits, reminds Adam Sarhan.
After several days of increases, bond rates eased slightly. The yield on 10-year US government bonds stood at 3.72%, against 3.76% on Friday at the close.
For Patrick O’Hare of Briefing.com, many operators are in a waiting position, not ruling out a new rise, fueled by investors who reallocate funds to equities “for fear of missing out on higher returns”. .
Wall Street continues to doubt the very offensive positioning of the Fed, whose members expect, by a large majority, a new series of rate hikes by the end of the year.
The enthusiasm of the New York market is also due to the impression that “the (American) economy can avoid an emergency landing”, according to Patrick O’Hare.
This view was supported by the indicator of the day, namely housing starts, which jumped by almost 22% year on year in May, to their highest level for 13 months, despite the tightening of credit conditions.
On the rating, the stars of AI remained sought after, in particular Nvidia (+0.86%), Amazon (+0.54%) or the specialist in data analysis Palantir (+0.74%).
Alibaba retreated after the announcement of a reshuffle of the group’s management, with the appointment of two relatives of the co-founder and emblematic personality of the Chinese giant, Jack Ma, to the positions of president and general manager.
The electric vehicle manufacturer Rivian rose (+4.37%) after unveiling an agreement with its competitor Tesla which will allow owners of its cars to access the network of chargers of the company led by Elon Musk.
Another competitor of Tesla, Nikola, jumped (+ 7.14%) after revealing a social plan on Friday which will reduce its workforce by almost a quarter and should allow the Phoenix (Arizona) group to preserve its cash.
Lazard advanced (+1.37%), after several media reported on talks held earlier this year with Abu Dhabi’s sovereign wealth fund, ADQ, for a possible takeover of the bank. business.
Eli Lilly progressed (+1.40%) after reporting the takeover of the Dice Therapeutics laboratory (+37.47%), specializing in the treatment of autoimmune diseases, for 2.4 billion dollars.
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