(New York) The New York Stock Exchange ended dispersed on Tuesday, with the technology sector rebounding after several sessions in the red, thanks to a rotation of investments.
The Dow Jones index lost 0.76% to 39,112.16 points, the NASDAQ, with its strong technological coloring, advanced 1.26% to 17,717.65 points and the S&P 500 nibbled 0.39% to 5469.30 points.
“We are seeing a continued rotation of investments,” said Peter Cardillo of Spartan Capital.
A less-than-enthusiastic consumer confidence indicator weighed down Dow Jones consumer values, such as Walmart supermarkets (-2.15%), the Home Depot DIY store chain (-3.58%) and even Nike (- 2.45%).
Consumer confidence deteriorated in June in the United States, with American households showing a little more pessimistic for the future.
The index measuring this confidence stood at 100.4 points in June, according to the Conference Board’s monthly survey published Tuesday, compared to 101.3 points in May.
After a rotation movement towards neglected stocks, in particular within the Dow Jones, there was “a regrouping towards Nvidia and AI (artificial intelligence) stocks”, observed, in a note, Patrick O’ Hare.
The darling stock of the market and the artificial intelligence (AI) sector, Nvidia, which had lost more than 12% in three sessions, found some color, ending with a jump of 6.76%.
Meta (+2.34%), Alphabet (+2.65%), Micron Technology (+1.52%), Taiwan Semiconductor (+2.84%) advanced together.
On the bond market, yields remained stable at 4.23% for ten-year bonds despite the strict words of the Governor of the Federal Reserve (Fed) Michèle Bowman.
The member of the Fed’s Monetary Committee “said that she was open to a rate hike if inflation does not improve,” underlined Peter Cardillo.
In any case, investors are awaiting the PCE inflation index for May on Friday, based on consumer spending, the Fed’s favorite measure of price developments.
The PCE index should come out at 2.6% year-on-year in May instead of 2.7% the month before, estimate analysts polled by MarketWatch.
The market will also watch for weekly unemployment claims on Thursday which may show further deterioration in the job market, which may bring a rate cut closer.
The evolution of durable goods orders in May, which weigh heavily on GDP growth, will also be scrutinized on Thursday.
On the market, Tesla took 2.61%, despite a new recall of its Cybertruck, for an exterior trim part likely to come off while the single massive windshield wiper of the futuristic vehicle encounters mobility problems.
But investors especially noted the acceleration in the number of registrations of new Tesla vehicles in China.
The cruise line Carnival cast off (+8.72%) 6.77%), pushed out by better than expected results, which saw the Miami group return to profit. Its reservations for the second half are at an all-time high.
Another downward factor for the Dow Jones, the aircraft manufacturer Boeing lost 2.23%.
According to press information, Boeing is preparing to buy its former subsidiary Spirit AeroSystems (-3.96%) through an exchange of shares rather than a cash transaction.
After the close, shares of express carrier FedEx soared by more than 15% after the group announced quarterly and annual results better than expected along with a structural savings plan that pleased investors.
Toronto Stock Exchange
Canada’s main stock index fell on Tuesday, weighed down by losses in the telecommunications and base metals sectors, while US stock markets were mixed.
The S&P/TSX Composite Index closed down 60.11 points at 21,788.48.
In New York, the Dow Jones industrial average fell 299.05 points to 39,112.16. The S&P 500 index rose 21.43 points to 5,469.30, while the NASDAQ Composite Index gained 220.84 points to 17,717.65.
The Canadian dollar traded at 73.21 US cents, compared to 73.19 US cents on Monday.
On the New York Mercantile Exchange, the price of oil dropped 80 cents to US$80.83 per barrel and that of natural gas fell five cents to US$2.76 per million BTU.
Gold was down US$13.60 at US$2,330.80 an ounce and copper slipped six US cents to US$4.37 a pound.
The Canadian Press