(New York) The New York Stock Exchange opened lower on Thursday, the day after a rebound, still guided by the firm posture of the American central bank (Fed), illustrated by new statements from its president, Jerome Powell.
Posted at 9:39
Updated at 10:15 a.m.
Around 9:55 am, the Dow Jones yielded 0.36%, the NASDAQ index gave up 0.10%, and the broader S&P 500 index fell 0.25%.
“We are heading towards a decline after yesterday’s sharp rise” (Wednesday), commented Peter Cardillo of Spartan Capital. The market also lacked news to maintain its momentum and returned to a “cautious” position, according to the analyst, with the indices also suffering from some profit taking.
The S&P 500 remains on six sessions of decline in eight trading days and has lost nearly 9% since its summer peak in mid-August.
“Everything came together yesterday for a rebound, with the exception of the energy sector,” noted Patrick O’Hare of Briefing.com. “It is a little less the case today. »
“There is a lack of conviction and a propensity to wait and see,” the analyst explained, in a note.
Few major indicators are expected between now and next Tuesday’s publication of the CPI price index for August, which will provide information on the trajectory of inflation, which had shown signs of easing in July.
Thursday, new jobless claims posted a further decline in the United States, to 222,000 job seekers, quite significantly below the 235,000 expected by economists.
“There is nothing in these data to suggest that the (US) economy is decelerating any further, let alone a recession on the way,” commented Ian Shpherdson of Pantheon Macroeconomics.
While the European Central Bank (ECB) raised its key rate by 0.75 percentage points on Thursday, a first, operators are more than ever convinced that the Federal Reserve (Fed) will do the same at its next meeting of the September 21 and 22.
They assign this option a probability of 84%, according to the model of the American stock exchange CME, based on futures contracts.
The central hypothesis of investors is that of a total increase of 1.50 percentage points by the end of the year, to bring the key rate to a range of 3.75% to 4.00%, before a break in 2023.
In an exchange hosted by think tank Cato Institute on Thursday, Fed Chairman Jerome Powell warned of a “premature easing” of central bank rates that could prevent inflation from being tamed, priority of the institution.
The Fed must act “strongly” against inflation so as not to repeat the scenarios of the 1980s, the official warned.
On the bond market, there was a lag between short rates, which were rising, and yields on longer maturities, which were easing.
The three-month US government bond rate settled above 3%, after a first foray above this threshold on Wednesday, a first for 14 years. The yield on 10-year US Treasury bonds contracted slightly to 3.24% from 3.26% the previous day.
Listed, the darling of many individual investors, the GameStop chain of video game stores soared (+ 2.52% to 24.65 dollars), despite a quarterly turnover in decline and a loss greater than that of last year around the same time. The group also announced a partnership with the FTX cryptocurrency platform.
The listed vehicle Digital World Acquisition Copr (DWAC), which is to merge with the media group Trump Media and Technology Group (TMTG) of the former president of the United States, fell before a decisive day (-1.11% to 22 $.81).
Shareholders are called upon to validate the postponement of the merger deadline, failing which DWAC could dissolve and deprive Donald Trump of an injection of fresh money.
The hydrogen fuel cell manufacturer Plug Power was hailed (+2.15% to 28.06 dollars) after the announcement of a large order from French Lhyfe, for ten electrolyzers with a total capacity of 50 megawatts.