(New York) The New York Stock Exchange opened lower on Wednesday on growing concern over the fallout from the US debt crisis, as many indicators point to a slowing global economy.
Around 9:50 a.m. EST, the Dow Jones was down 0.53%, the NASDAQ index was down 0.60%, and the broader S
“It’s all focused on the debt ceiling negotiations,” commented LBBW’s Karl Haeling. “And the market is upset that an agreement has not yet been reached. »
While US President Joe Biden and Republican opposition representatives in Congress continue to negotiate, it appears that no major progress has been made so far, eight days from a possible US default. .
No meeting was scheduled for Wednesday between the two camps.
The VIX index, which measures volatility and investor anxiety, was up almost 7%.
At the same time, Treasuries maturing on June 6, totaling more than $138 billion, have seen their rates climb to 6.10%, which means that investors are looking to get rid of them, for fear that the United States will not reimburse them.
The “uncertainty” that marks “this case…puts a lid on the market,” Patrick O’Hare of Briefing.com said in a note.
To make matters worse, “recent macro data around the world has been weak, especially in the manufacturing sector,” notes Karl Haeling, “particularly in Europe. […] The mood is quite negative. »
A series of well-made publications in the distribution sector did not help to change the situation.
Department store chain Kohl’s (9.55%) was hailed after posting better-than-expected results.
The group has improved its margins, as has the clothing chain Abercrombie
Elsewhere on the stock market, several tech flagships were taking on water, after statements by Nvidia chief executive Jensen Huang, who warned that an escalation of US sanctions against China would cause “enormous damage” for the American technology industry, in an interview with the Financial Times.
The manufacturer of essential graphics cards in the race for artificial intelligence fell (-1.62%), as did the semiconductor giants AMD (-0.96%) or Texas Instruments (-1.30%) .
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