(New York) The New York Stock Exchange opened lower on Monday, appearing ripe for consolidation after the NASDAQ and S&P 500 set new records on Friday, although momentum remains upward.
Around 3:15 p.m., the Dow Jones fell 0.26%, the NASDAQ index fell 0.22% and the broader S&P 500 index dropped 0.12%.
The S&P 500 has posted gains in 16 of the last 18 weeks, a performance it has not achieved since 1971.
“We repeat, week after week, that after records, many expect a decline, but this has not yet happened because investors are still buying for fear of missing a new rise,” explained, in a note, Patrick O’Hare, analyst at Briefing.com.
“It’s going to happen eventually,” Quincy Korsby of LPL Financial said of the consolidation, “especially since March, in general, is a tough month, especially in election years.”
On the bond market, rates were tightening. The yield on 10-year US government bonds stood at 4.22%, compared to 4.17% at Friday’s close.
The week will be marked by the double hearing in Congress of the president of the American central bank (Fed), Jerome Powell, Wednesday before a committee of the House of Representatives and Thursday in the Senate.
The central banker is heading into a minefield, according to Quincy Krosby, with, on one side, Democrats calling for rate cuts and, on the other, Republicans accusing the Fed of being too political.
The market is becoming increasingly pessimistic about the number of rate cuts to expect in 2024, currently counting on three, while it predicted six, or even seven, at the start of the year.
On Friday, the chief economist of the investment company Apollo Global Management, Torsten Slok, even hypothesized a vintage without any decline.
This questioning arises in the context of an American economy that is much more resilient than expected, but also of inflation that is only decelerating very gradually.
The monthly report on American employment, which will be published on Friday, should provide new elements to gauge the trajectory of the United States.
On the stock market, nothing seemed to be able to stop the rise of semiconductor specialist Nvidia, which still gained 3.24%.
The Santa Clara group took the opportunity to overtake the oil company Saudi Aramco and climb onto the third step of the podium of the world’s largest capitalizations, now at $2,124 billion.
Nvidia’s competitors, notably AMD (+2.72%) and Qualcomm (+1.53%), were also increasing.
Apple fell (-2.86%) after the European Commission announced on Monday that it had imposed a fine of 1.8 billion euros on the Cupertino (California) firm for abuse of a dominant position in the online music market. . The group said it would appeal the decision.
Spotify was sought after (+0.65%), as it was considered one of the winners of this decision.
The airline JetBlue took off (+2.40%) after officially giving up on acquiring its competitor Spirit Airlines (-11.69%), a union which would have constituted the fifth player in the sector in the United States. The project was largely compromised by an unfavorable court decision in mid-January.
Tesla declined (-4.67%), while deliveries from its Shanghai factory fell in February to their lowest level since December 2022.
The specialist in servers and remote computing infrastructure (cloud) Super Micro (+18.37%) benefited from its upcoming integration into the S&P 500, made official on Monday.
He will be accompanied by the shoe manufacturer Deckers Outdoor (+2.86%), which notably controls the Ugg brands but also Hoka, the most fashionable running shoe manufacturer of the moment.
Macy’s accelerated (+15.28%) after the investment companies Arkhouse Management and Brigade Capital Management significantly increased their takeover offer for the department store group, now set at $6.6 billion compared to 5.8 previously.