After a bad start, Wall Street finishes in the green

(New York) The New York Stock Exchange finally ended in the green on Tuesday thanks to a decline in bond rates, after it had started poorly in the wake of global stock markets.

The Dow Jones index gained 0.36% to 38,711.29 points, the technology-dominated NASDAQ rose 0.17% to 16,857.05 points and the S&P 500 gained 0.15% to 5,291. .34 points.

“The market has turned around. First of all, it was falling because it followed the markets around the world, particularly the Indian stock market which experienced a severe fall,” commented Peter Cardillo of Spartan Capital, interviewed by AFP.

In India, the Nifty 50 index fell 5.93%, its worst session since March 2020, and the Bombay Stock Exchange (BSE) fell 6.14%, dragging global markets lower.

The Indian Stock Exchange did not appreciate the outcome of the legislative elections which suggest a less important victory than expected for Modi’s ruling alliance.

“Then during the session, bond rates fell and the Dow Jones, helped by some of the “Magnificent Seven”, moved forward again,” added Peter Cardillo.

The “Magnificent Seven”, the technological growth stocks which represent the largest capitalizations on Wall Street, which appreciated this decline in interest rates are Nvidia (+1.25% to 1164.37 dollars), Microsoft (+0 .62%) and Alphabet (+0.41%) in particular.

Two indicators reassured investors about the evolution of the American economy and the prospects for changes in interest rates.

On the one hand, industrial orders in April were up 0.7% as expected.

On the other hand, the number of job offers fell in April to the lowest since February 2021 to 8.06 million compared to 8.35 million the month before, according to a monthly survey by the Labor Department.

Official employment figures for May will be released on Friday.

“This shows that the job market is easing a little,” noted the Spartan Capital analyst. An effect sought by the Fed, the American central bank, which, by maintaining high rates, seeks to slow down activity to curb inflation.

Ten-year bond yields fell to 4.32% around 4 p.m. ET from 4.38% the day before.

On the value side, the online bank Axos Bank dropped 4.17% while a brief report from the short-selling fund Hindenburg Research, which is betting on the decline on Axos, suggests that the establishment is very exposed to risky assets such as commercial real estate loans.

A host of banks were swept up in this trend such as Western Alliance Bank Corporation (-2.68%), Customers Bancorp (-2.99%) and Atlantic Union Bankshares (-2.12%).

Six sectors out of the eleven of the S&P finished positive, firstly real estate (+0.95%) reinvigorated by the decline in interest rates.

Ford lost 1.35% even though the automaker announced an 11.2% jump in sales in May in the United States, gaining market share thanks to its new models, particularly electric and hybrid vehicles. whose sales increased by 64%.

Computing and storage solutions group HPE fell 1.98% ahead of its second-quarter earnings announcement.

The entertainment group Paramount Global, which owns the American channels CBS and MTV, returned a good part (-4.38%) of what it had earned the day before. On Monday, CNBC reported that Paramount’s controlling shareholder, Shari Redstone, has reached an agreement with the studio Skydance Media, which will merge the two entities.

The highly speculative action of the video game store chain GameStop dropped 5.37% after being catapulted (+21%) the day before by a message from stock marketer Keith Gill called “Roaring Kitty”, to the origin of the “meme stocks” movement – ​​these titles carried by exchanges on social networks.

According to Wall Street Journalthe online brokerage platform E Trade, owned by Morgan Stanley, would be tempted to ban “Roaring Kitty” from accessing the platform, accusing it of stock manipulation.