(New York) The New York Stock Exchange was moving slightly in the green on Friday, trying to rebound after several sessions of decline, stimulated by the Chinese initiative to lower a key interest rate to support a weak economy and real estate sector. sadness.
Posted at 10:15 a.m.
Around 10 am, the Dow Jones index advanced 0.50%, the NASDAQ gained 0.80% and the S&P 500 took 0.70%.
Thursday, after the darkest session of the year, the Dow Jones had again lost 0.75% to 31,253.13 points. The tech-influenced NASDAQ index fell 0.26% to 11,388.49 points, and the broader S&P 500 index fell 0.58% to 3,900.79 points.
Over the week so far, the three indices are down at least 3%.
At this rate, NASDAQ and S&P 500 could thus align their seventh week of losses in a row, a first since 2001, the day after the bursting of the internet bubble.
For the Dow Jones, an eighth straight week of losses looms, a streak not seen since the 1930s.
“This small positive disposition at the opening should not surprise anyone given how the indices have behaved so far”, noted Patrick O’Hare of Briefing.com, recalling the poor performances of the week.
“Without wanting to rub salt in the wound, the NASDAQ is still down 27.2% since the start of the year, the S&P 500 has fallen 18.2% and Dow Jones has dropped 14%”, recalled the analyst.
According to him, the mood for the rebound “also stemmed from a certain enthusiasm after the decision by the People’s Bank of China to cut a benchmark rate for mortgages by 15 basis points to 4.45%”.
This is the biggest reduction in this rate since 2019 and the initiative seemed to comfort the market, as Chinese growth slows, weighed down by massive lockdowns linked to a resurgence of the COVID-19 epidemic and health policy. without concession from Beijing.
“Wall Street is trying to recover some of the ground recently lost and the sentiment in favor of risk is helped by the Chinese Central Bank which has decided to support the economy”, opined analysts at Wells Fargo.
Investors remained worried about growth in the US, however, as a new retail group, Ross Stores (-22.33%) also reported lower sales and lower forecasts. It thus joined the Walmart (+0.66%) and Target (-0.15%) chains which caused the stock market to fall dramatically in the middle of the week.
Retailers cited rising costs that are cutting bottom lines and changing consumer habits.
Nine of the S&P’s eleven sectors were in positive territory, led by energy (1.73%), communication services (+1.34%) and information technology (+1.31%).
The big names in technology took up colors like Meta (Facebook, +3.22% to 197 dollars), Apple (+1.87% to 140 dollars) and even Twitter (+1.27%), very roughed up until here since he was at the center of negotiations for a takeover by Elon Musk, the boss of Tesla (-1.23% to 700 dollars).
Yields on 10-year Treasury bills were stable at 2.84% while the VIX volatility index eased to around 28 points against 32 the day before.