(New York) Driven by technology, the New York Stock Exchange closed higher on Tuesday, continuing last week’s rebound, also helped by a slight decline in bond rates.
The Dow Jones index advanced 0.17% to 34,152.60 points, the tech-heavy NASDAQ gained 0.90% to 13,639.86 points and the S&P 500 rose 0.28%. at 4378.38 points.
The technology sector led the rise on Tuesday with notable gains for Microsoft, whose action reached a new all-time high closing at $360.53 (+1.12%), but also Amazon (+2.13%). and Apple (+1.45%).
That of semiconductors was also well supported, notably Intel (+2.16%), after an article in the Wall Street Journal affirming that the microprocessor giant will receive billions of dollars in the name of the “Chips Act”.
This $53 billion law adopted by the Biden administration aims to boost American production and research in the electronic chip sector.
The energy sector, on the other hand, was “severely weighed down by the fall in crude prices”, underlined Peter Cardillo of Spartan Capital.
A barrel of Texas WTI oil fell to a more than three-month low due to signs of slowing demand in China, the world’s largest importer of crude.
The big names in the sector suffered the blow such as Chevron (-1.76%), Exxon Mobil (-1.57%), Conoco (-2.72%).
On the bond market, ten-year yields eased further to 4.56% compared to 4.64% the day before, “which helped the stock market,” noted Mr. Cardillo.
Investors also assessed the various interventions by officials of the American Central Bank.
A Fed governor estimated Tuesday that a further rate hike could be necessary to curb inflation, if it does not slow down enough in the coming months.
“I still expect that we will need to raise rates further to bring inflation back to our 2.0% target,” said Michelle Bowman, known for her “hawkish” positions in favor of tight monetary policy. .
Another member of the Fed, Lorie Logan, president of the Dallas branch, estimated that due to the resilience of the economy, we would “continue to need strict financial conditions to bring inflation down to 2 .0%.”
In terms of economic data, the US trade deficit for September increased more than expected to $61.5 billion (+5%) due to an increase in imports. This figure reflects the stockpiling of American companies before the holiday season.
But at this rate over the whole of 2023, the deficit promises to be the lowest in three years, which could be a sign of the slowdown in economic activity.
On the consumer side, the New York Fed published quarterly data on American household debt which shows a new record with 17.3 trillion dollars of debt, the increase of which in recent times is mainly due to credit cards .
On the stock front, WeWork disappeared from the stock market while the former star of shared offices filed for bankruptcy Monday evening.
The group has placed itself under the protection of Chapter 11 of the bankruptcy law and hopes to succeed in negotiating a “significant” reduction in its debt and to “end the leases of a certain number of locations” which do not generate any income for it. not enough money.
WeWork was once valued at up to $47 billion, but its stock was worth only 80 cents Monday evening at the close of the New York Stock Exchange, for a market capitalization of $44.49 million.
The chauffeur-driven vehicle (VTC) and meal delivery reservation platform Uber announced less good results than expected for the third quarter with a turnover of 9.3 billion dollars against 9.5 billion expected. This is still 11% more than the year before. Uber stock jumped 3.66%, that of its competitor Lyft 2.85%.
Toronto Stock Exchange
Losses in the energy sector weighed on the Toronto Stock Exchange on Tuesday, while the major American stock indexes closed higher.
The S&P/TSX composite index on the Toronto floor returned 168.35 points, or 0.85%, to end the session with 19,575.59 points.
On the currency market, the Canadian dollar traded at an average rate of 72.67 US cents, down from 73.12 US cents on Monday.
The Canadian Press