(New York) After opening in the red, the New York Stock Exchange ended in disarray on Monday, while bond rates, which had reached a 16-year high at the start of the session, then fell back.
The Dow Jones index lost 0.58% to 32,936.41 points and the S&P 500 fell 0.17% to 4217.04 points. The NASDAQ, with a strong technological coloring, gained 0.27%, to 13,018.33 points.
“Stocks reversed their downward trend after yields on 10-year Treasury notes cooled, distancing themselves from the important psychological threshold of 5%,” noted analysts at Shaeffer’s.
Interest rates on ten-year Treasury bills briefly passed the 5% threshold at the start of the session, the highest level since 2007.
But at the close of the stock market, they stood at 4.84%, down 1.34%.
Over the past eight days, bond yields have accelerated, in the face of better-than-expected American economic figures and geopolitical risks in the Middle East.
Last week, Jerome Powell, the president of the American Federal Reserve (Fed), judged American inflation still “too high” and had not ruled out a further increase in its key rates, its main tool to fight against the rise. prices.
This week, investors will continue to weigh the strength of the US economy as the first estimate of third-quarter growth is expected on Thursday.
The widely followed forecast, produced by the Atlanta Fed branch, calls for annualized growth of 5.4%. Private sector analysts are betting on an expansion of 4%, according to the Briefing consensus, which remains a very solid performance.
Among the indicators, the Fed’s favorite barometer for measuring price developments, the PCE inflation index, is also expected on Friday.
In terms of company results announcements, the week is one of the most intense of the season.
The technology sector will be featured with quarterly publications from Microsoft (which ended up 0.81%) and Alphabet on Tuesday (+0.85%). Meta (+1.74%) will announce its results on Wednesday and Friday it will be the turn of Intel (-3.06%) and Amazon (+1.11%).
Meanwhile, General Motors (-1.42%), General Electric (+0.61%), Kimberly Clark (-1.05%), Coca-Cola (-0.93%), and 3m (-1 .10%) are expected from Tuesday.
After announcing to buy its compatriot Hess, a gas and oil producer, for $53 billion, the oil group Chevron lost 3.70% to $160.65.
Hess Corporation, in the green at the start of the session, finally lost 1.04%.
With this operation, Chevron gets its hands on Hess’s positions in the oil bloc offshore of “Stabroek” off the coast of Guyana, a small South American country which has the world’s largest reserves of crude oil per capita.
This mega-acquisition comes less than two weeks after the announcement of the acquisition of Pioneer by ExxonMobil for $60 billion.
Elsewhere on the stock market, the Walgreens pharmacy chain gained 3.29%, gaining more than 3% after a good note from JPMorgan.
The Toronto Stock Exchange falls
The Toronto Stock Exchange closed lower on Monday, dragged down by declines in the energy and metals sectors.
The S&P/TSX composite index on the Toronto floor lost 68.90 points, or 0.36%, to end the session with 19,046.74 points.
On the currency market, the Canadian dollar traded at an average rate of 73.03 US cents, up from 73.02 US cents on Friday.
With The Canadian Press