(New York) The New York Stock Exchange opened higher on Wednesday, ready for a rebound and a bargain hunt after Tuesday’s downturn, in a climate of risk appetite.
Around 10:05 a.m. ET, the Dow Jones was up 0.16%, the NASDAQ index was up 0.67% and the broader S&P 500 index was up 0.54%.
“There is a rebound in the air,” observed Patrick O’Hare of Briefing.com in a note. “But that was already the case at the end of the session on Tuesday,” when the indices saw their losses reduced.
The mood is for cheap purchases, according to the analyst, a movement which benefited the graphics card and semiconductor manufacturer Nvidia (+2.58%), but also Meta (+2.09%) and AMD (+ 2.69%).
Nvidia even moved back ahead of Amazon (+0.60%), in fifth place among the world’s largest capitalizations.
After jumping to its highest level in three and a half months, on Tuesday, the VIX index, nicknamed “the fear index”, which measures market volatility and investor nervousness, fell by almost 8%.
Another sign of calm, the yield on 2-year US government bonds, which soared on Tuesday after the publication of a higher-than-expected inflation figure, eased to 4.60% from 4.65 % the day before closing.
“When you have this kind of drop (the NASDAQ dropped 1.80% on Tuesday), the question is whether it’s an opportunity to buy back or whether it’s the start of something deeper,” he said. know a correction, commented Quincy Krosby.
The New York market reacted poorly to the CPI price index on Tuesday, higher than expected, “but the market remains in the idea that the rate tightening cycle is over”, underlines Quincy Krosby.
“Operators have reduced their expectations of rate cuts, but that does not mean that they no longer believe in them,” added Patrick O’Hare, who recalls that Wall Street is still counting on four blows this year. year.
On the stock market, the vehicle reservation platform with driver (VTC) Lyft had its foot on the floor (+37.18%), after the publication of better than expected results, Tuesday after the market. The group also expects to generate, for the first time, a positive net cash flow over the entire current year.
During electronic trading after Wednesday’s close, the stock rose into orbit, gaining more than 60%, following a typographical error in the earnings release.
The latter reported a forecast of an improvement of 5 percentage points in Lyft’s margin for 2024, when it was only 0.5 points in reality. CFO Erin Brewer corrected the blunder during the conference call with analysts.
Lyft’s rise benefited its major competitor Uber, up 12.05%.
The agri-food group Kraft Heinz fell back (-5.02%), reflecting its turnover in the fourth quarter. The manufacturer of Heinz ketchup and Philadelphia cheese spread attributed part of the drop in its volume sales to price increases that turned some consumers away from its products.
The new surge in bitcoin, to its highest level in 25 months, boosted the values of the cryptocurrency and blockchain sectors, the technology on which digital currencies are built.
The exchange platform Coinbase (+12.02%) or the “miner” (creator of cryptocurrencies) Marathon Digital Holdings (+11.53%) were in high spirits.
The accommodation reservation platform Airbnb fell (-4.95%), despite results better than expectations. Some investors noted statements by leaders suggesting a slowdown in growth in the first quarter of 2024.