(New York) The New York Stock Exchange moved higher on Monday, shortly after the opening, at the start of a week poor in indicators, crossed by a rebalancing outside the technology sector.
Around 10:05 a.m. (Eastern time), the Dow Jones gained 0.71%, the NASDAQ index was close to balance (+0.06%) and the broader S&P 500 index gained 0.34%. .
“The day lacks a poster likely to stir up the crowds,” warned Patrick O’Hare of Briefing.com in a note.
“The market is in a waiting position,” noted Karl Haeling of LBBW. “It’s a week with second-rank indicators, before the PCE index on Friday. »
Economists are counting on price stability in May, according to this index closely followed by the American central bank (Fed), with the annual rate slowing to 2.6%, compared to 2.7% in April.
Just like Thursday and Friday, investors took profits on several flagship stocks in the technology sector after a meteoric rise, in particular Nvidia (-2.54%).
The semiconductor specialist sought after for generative artificial intelligence (AI) has erased more than 300 billion in market capitalization since its peak on Tuesday.
Other chip manufacturers, Qualcomm (-3.27%), Broadcom (-0.18%) and AMD (-0.74%), were also subject to liquidations.
“I imagine there will be a significant movement from stocks to bonds,” which will become attractive again with the deflation of bond rates, predicted Karl Haeling.
The yield on 10-year US government bonds was unchanged from Friday’s close at 4.25%.
Part of the money earned from sales of technology stocks was also reallocated to other sectors.
Operators embarked on a bargain hunt, which notably benefited Dow (+1.06%), Disney (+0.22%) and Chevron (+1.51%), which have had a difficult run in recent times. month.
Portfolio reallocations could be accentuated by the approach of the end of the month and quarter, which often encourages managers to recompose their investments before presenting them to their clients.
The game of musical chairs is also encouraged by the update, on Friday, of the Russell 1000, 2000 and 3000 indices, which will exclude, then integrate, dozens of securities into their basket of values.
Adding a company to one of these indexes instantly gives it added visibility and weight, while those left out may face a backlash.
While the market is still more than two weeks away from the start of earnings season, a few releases are expected this week, including FedEx on Tuesday, General Mills on Wednesday, and Nike on Thursday.
On the stock market, Meta progressed (+2.18%), the day after the publication of information from Wall Street Journalaccording to which the Menlo Park (California) group discussed with Apple (+0.75%) the possibility of giving it access to its own generative AI system to equip its devices.
The supermarket chain Target rose (+2.61%), after announcing a partnership with the e-commerce platform Shopify (+0.86%). The collaboration notably provides for the integration, in Target stores, of products and brands currently only present on Shopify.
Bitcoin continued its slide, to its lowest level in a month and a half, and took with it the cryptocurrency exchange platform Coinbase (-2.28%).
Under Armor fell (-0.57%). The sports equipment manufacturer indicated, Friday after the stock market, that it had reached an amicable agreement with shareholders who accused it of having masked the slowdown in its sales in 2016.
The transaction provides for the payment of $434 million in compensation.
The UPS courier group advanced (+1.25%) after reporting the sale of its freight brokerage subsidiary to one of the specialists in this market, RXO (+15.11%), for 1.025 billion dollars.