(New York) The New York Stock Exchange ended lower on Monday, upset by the rise in rates on the bond market which is mourning monetary easing by the Fed from March.
The Dow Jones index and the S&P 500 fell slightly from their record highs on Friday, falling respectively by 0.71% to 38,380.12 points and 0.32% to 4942.81 points. The NASDAQ lost 0.20% to 15,597.68 points.
Stocks have been held back by the rise in bond yields as investors abandon the idea of a reduction in Federal Reserve (Fed) rates from March, as Jerome Powell has constantly repeated.
The President of the Fed said again on Sunday evening in an interview on the show 60 minutes from CBS, that a rate cut was not imminent.
Yields on 10-year Treasury bills climbed above 4.16%, close to their highest of the year in session, compared to 4.02% on Friday.
The markets also digested the employment report published Friday, which indicated that the American economy had created almost twice as many jobs as expected in January with 353,000 hires.
Given the dynamism of activity, confirmed by an indicator of the services sector, “now even a reduction in Fed rates in May is not a given”, underlined Karl Haeling of LBBW.
On the market, Meta returned 3.28% to 459.41 dollars after skyrocketing on Friday (+20.32%), inflating the market capitalization of Mark Zuckerberg’s group by more than 200 billion dollars in one session after good results for Facebook, Instagram and Whatsapp.
Boeing lost ground (-1.31%), the aircraft manufacturer facing new problems with its 737 MAX.
McDonald’s shares were penalized (-3.73%) after contrasting results in the fourth quarter. Its international turnover was affected by the war in the Middle East after calls for a boycott.
Boeing and McDonald’s are both part of the Dow, which weighed on the index.
And the market appreciated that the cosmetics group Estée Lauder (+12.15% to $150.41) announced the elimination of 3,000 jobs, after declining results for the period from October to December, due to a decline in sales in Asia.
The S&P/TSX Composite Index lost more than 200 points on Monday
The main Canadian stock index recorded a loss of more than 200 points on Monday in a widespread decline and American stock markets also moved lower.
Base metals, utilities and telecommunications contributed to the decline in the TSX. The S&P/TSX Composite Index fell 213.20 points to 20,871.89.
The Canadian dollar traded at 73.93 US cents, compared to 74.33 US cents on Friday.