(New York) The New York Stock Exchange ended in disorganized order on Monday, with the Dow Jones recording a new closing record on a consolidating market, deprived of any significant event and which is already awaiting the publication of an inflation indicator Tuesday.
The Dow Jones gained 0.33%, the NASDAQ index lost 0.30% and the broader S&P 500 index fell 0.09%.
Wall Street has recorded progress in 14 of the last 15 weeks, a first since 1972, concluded by a record for the S&P 500 beyond the symbolic threshold of 5,000 points on Friday.
“The market needs to catch its breath from time to time,” commented Steve Sosnick of Interactive Brokers. ” It’s clean. We climbed a lot in a very short time. It seems reasonable to me to move up and down for a day or two, or even a little more. »
Largely responsible for the flamboyant performance of Wall Street over the past year, the stars of the technology sector have regained some strength, like Microsoft (-1.26%), Apple (-0.90%) and Amazon ( -1.21%).
Insolently strong, semiconductor manufacturer Nvidia (+0.16%), at the center of the artificial intelligence (AI) fever, has managed to stay in the green.
Up 46% since the start of the year, the Santa Clara group has seen its value increase almost fivefold (4.7) since the launch of ChatGPT at the end of November 2022.
Nvidia even briefly overtook the giant Amazon on Monday to enter the circle of the five largest capitalizations in the world.
Also well positioned in the AI race, chip designer Arm jumped another 29.30% during the session. In one week its capitalization more than doubled.
The low float of the value, 90% of the securities being controlled by the investment company SoftBank, accentuates the volatility of the security and its propensity to experience sudden price variations. The British company saw its capitalization double in one week.
In this breathing session, the Dow Jones did well, to the point of setting a new record. It owes this mainly to defensive stocks, that is to say theoretically less sensitive to the economic situation, in particular Nike (+2.56%), the Home Depot chain (+0.63%) and the industrial conglomerates 3 m ( +1.86%) and Dow (+1.48%).
The bond market remained calm, in the absence of major publications or news of importance. The yield on 10-year US government bonds stood at 4.17%, as it closed on Friday.
Investors are awaiting the CPI price index for January, which will provide inflation news on Tuesday. Economists are counting on an index below 3%, at 2.9%, for the first time in almost three years.
“There is nervousness,” Steve Sosnick warns of the CPI, “because we see the risk of disappointing as higher than the probability of impressing.”
On the stock market, Diamondback Energy surged (+9.38%) after the announcement of the acquisition of its competitor Endeavor Energy, for around $26 billion. The combination of the two groups will form a shale oil giant in the Permian Basin, a region straddling west Texas and southeastern New Mexico.
The operation supported other players in the sector, such as ExxonMobil (+1.38%) and Chevron (+0.69%).
Stocks associated with cryptocurrencies took the lead from bitcoin, which crossed $50,000 on Monday for the first time since late 2021.
The digital currency exchange platform Coinbase performed well (+3.75%), as did its competitor Robinhood (+3.98%).
The ready-to-wear financial company VF Corp, which notably controls Vans and Timberland, soared (+12.94%) after a member of the founding family lent its support to the activist fund Engaged Capital, which calls for an overhaul of the board of directors and strategy.