(New York) The New York Stock Exchange ended modestly higher on Tuesday, continuing to catch its breath after Friday’s jump that took the indices to their highest in several months thanks to good employment figures.
The Dow Jones index gleaned 0.03% to 33,573.28 points, the tech-heavy NASDAQ advanced 0.36% to 13,276.42 points and the broader S&P 500 index 0.24% to 4,283. .85 points, slowly rising to its new high for the year.
“We had a big jump of 600 to 700 points for the Dow Jones on Friday after the US employment report,” said Hugh Johnson of Hugh Johnson Economics.
“Now we take a little breather, because, in the eyes of some investors, this jump seemed a bit exaggerated,” commented the analyst.
The employment figures were positive with strong hiring (339,000) but also a slowdown in the rise in the average hourly wage, which is favorable for inflation.
“It was a good combination. We couldn’t have asked for better and the market reacted strongly” on the rise, Mr. Johnson said.
In addition to this breathing, the market was also “in waiting mode” before the inflation index which must be published next week and especially the holding of a monetary meeting of the Fed, estimated Steve Sosnick Interactive Brokers.
There is almost a consensus that the central bank will take a break on rate hikes, at least for this meeting of June 13 and 14, while waiting to assess the evolution of credit conditions after the difficulties. of the banking sector.
The analyst also discerns an interest of investors for values other than those of large caps.
Attractiveness of small caps
The Russell 2000 index, which includes small caps, ended up sharply (+2.69%) as did the regional banks. “I tend to think that brokers are looking for rotation into stocks that haven’t risen too much yet,” he explained.
Among regional banks, Comerica jumped 7.19%, Zions Bancorporation 4.87%.
Within mega-caps, Apple stalled (-0.25%) after entering the metaverse yesterday.
The apple group announced on Monday the launch of its first virtual and augmented reality headset, called Vision Pro, which the manufacturer will sell for 3,500 dollars.
Just before the announcement, the Cupertino group, already the first capitalization on Wall Street, had reached the historic peak in this area of 2,850 billion dollars before retracting. “It was typically a case of ‘we buy on the rumor and we sell on the news’”, underlined the analyst of Mr. Sosnick.
Boeing fell 0.71% after a stabilizer assembly problem detected in the manufacture of the 787 Dreamliner which will “affect the delivery schedule in the short term”, said the aircraft manufacturer.
But it was above all the universe of cryptocurrencies that shook the market on Tuesday. After the legal attack on Binance, the largest trading platform in the world, by the SEC on Monday for circumventing regulations, it was around Coinbase to be prosecuted by the stock market policeman.
The American Financial Markets Authority has sued the first cryptocurrency trading platform in the United States, Coinbase, for non-compliance with the regulations.
“It went off like a bomb,” commented Patrick O’Hare. Coinbase’s stock on the NASDAQ fell 12.09% to $51.61.
The market policeman criticizes the platform, which has 110 million users, for not having registered with him as an exchange platform and intermediary for cryptocurrency transactions.
In the bond market, 10-year yields were flat as of 4:30 p.m. EST at 3.68%.