(New York) The New York Stock Exchange ended lower on Wednesday, continuing the correction that began on Tuesday, thanks to the start of the year and a reassessment, by the market, of the economic and monetary trajectory of the United States .
The Dow Jones fell 0.76%, the NASDAQ index lost 1.18% and the broader S&P 500 index returned 0.80%.
“The market went crazy in December,” commented Hans Olsen of Fiduciary Trust Company. “He went way too far. And the ebb that we are witnessing at the moment, this consolidation, was necessary for the upward movement to last. »
Starting in the red from the opening, the New York market widened its losses at the end of the session, after the publication of the minutes of the last meeting of the American central bank (Fed).
During this meeting of December 12 and 13, the majority of Fed members considered it “appropriate” to maintain its rates at a high level as long as inflation had not returned to a level sufficiently close to the objective of the Federal Reserve, or 2% per year.
“A rate cut from March seems improbable after reading this report,” said Chris Low, of FHN Financial, while investors are nevertheless counting on a first blow at this deadline.
“People were too confident” that monetary easing was imminent, according to Hans Olsen, “and that mood is changing.”
The day’s macroeconomic indicators also encouraged a recalibration of expectations, continuing to depict US economic activity in a decelerating, but still resilient, phase.
The ISM index of activity in the manufacturing sector thus came out above expectations for December, even if it reflects a contraction in American industry.
The decline in stocks penalized, first of all, the “Magnificent Seven”, namely the seven giant capitalizations in the technology sector which propelled the NASDAQ last year.
Among them, Tesla particularly suffered (-4.01%), despite several positive analyst notes, notably from JPMorgan and CFRA.
The group reported deliveries above expectations on Tuesday, but its Chinese competitor BYD stole the show, becoming, in the fourth quarter of 2023, the world’s leading manufacturer of electric vehicles.
After a lowering of recommendation from Barclays on Tuesday, due to iPhone 15 sales considered sluggish, particularly in China, Apple’s suppliers (-0.75%) took another shine.
The semiconductor manufacturers Broadcom (-2.47%), Qualcomm (-1.88%) or Intel (-1.57%), all major suppliers of chips for the Apple firm, all ended up far away. in the red.
Wall Disney progressed (+1.04%), after receiving the support of two alternative funds (hedge funds), ValueAct Capital and Blackwell Capitals, in the face of demands from activist investor Nelson Peltz and his company Trian, who wants force the entertainment group to change strategy.
ExxonMobil (+0.84%) and Chevron (+1.91%) were supported by the strong rebound in oil prices.
The cinema chain AMC saw its stock fall to the lowest level in its history, after announcing on Tuesday the issue of millions of new shares in exchange for the repayment of a bond loan.
After being tense on Tuesday and Wednesday at the start of the day, the bond market has calmed down. The yield on 10-year US government bonds was almost unchanged, at 3.91%, compared to 3.92% the day before, at close.
The printer specialist
Toronto Stock Exchange
The Toronto Stock Exchange lost more than 100 points late Wednesday morning, weighed down by the base metals sector. American markets were also falling.
The S&P/TSX composite index on the Toronto floor lost 103.16 points to 20,768.98 points.
On the currency market, the Canadian dollar was trading at 74.91 US cents, down from its average price of 75.10 US cents on Tuesday.
The Canadian Press