(New York) The New York Stock Exchange ended in the red for the second straight session pending the release of the US price index and after gloomy news from the Chinese economy.
The Dow Jones index fell 0.54% to 35,123.36 points, the tech-heavy NASDAQ lost 1.17% to 13,722.02 points and the S index
“The market has been in a nervous waiting mode,” summed up Peter Cardillo of Spartan Capital Securities.
China has released disappointing new data. Following those of the fall in its exports and imports the day before, Beijing reported a decline in its CPI price index of 0.3% in July.
“This news is negative globally. In short, China is going into deflation,” commented Peter Cardillo.
This reflects “a lukewarm and uneven recovery on the consumer side in China, but it’s still a long way from the persistent deflation we’ve seen in Japan,” said Duncan Wrigley of Pantheon Macroeconomics.
Investors also remained cautious ahead of U.S. inflation figures to be released Thursday before Wall Street opens for the CPI consumer price index and Friday for producer prices.
Analysts expect inflation to come in at 3.3% year on year from 3% for June.
These figures will fuel expectations for the direction of US monetary policy as a large majority of investors believe that the central bank (Fed) will choose to observe a status quo on rates in September.
On the bond market, rates fell a little to 4.00% around 4:15 p.m. (Eastern time) against 4.02% the day before.
On the odds, Disney, which closed slightly lower (-0.69% to 87.52 dollars), dropped 2.06% in electronic trading even if its quarterly results exceeded forecasts.
Investors were instead reacting to the loss of more than 10 million second-quarter subscribers to its Disney streaming service. The service saw its subscribers decline for the third straight quarter to 146.1 million.
On the NASDAQ, the information technology (-1.51%) and communications (-1.24%) sectors led the losses.
After the market closed, the Biden administration announced measures restricting American investment in the most advanced technologies in China, such as artificial intelligence, measures that were expected.
The shares of semiconductor manufacturers concluded in sharp decline such as Nvidia (-4.72% to 425.54 dollars), AMD (-2.44%) or Intel (-2.11%).
Tesla also lost more than 3%, after a fourth negative session. The stock is under pressure with the announced departure of the electric carmaker’s chief financial officer, Zach Kirkhorn.
The title of the online gaming platform Roblox collapsed 21.94% to 29.46 dollars, sanctioned after the announcement of a quarterly loss greater than expected associated with weaker than expected reservations.
Electric vehicle maker Rivian fell 9.88% despite better-than-expected second-quarter results.
Rivian raised its vehicle production forecast to 52,000 from 50,000 for the year and reduced its operating loss projection.
Shared office specialist WeWork collapsed 38% to $0.12.
WeWork, in great difficulty for several years, had warned the American stock market policeman (SEC) on Tuesday that it feared for its survival.
“There is substantial doubt about the company’s ability to continue as a going concern,” the company warned in an SEC filing.
At issue, according to the company: financial losses, liquidity needs and the decline in the number of tenants. It says it lost billions of dollars in the first six months of this year due to falling demand linked to poor economic conditions.
The Toronto Stock Exchange improved on Wednesday, the day after a difficult session and despite the weakness of the American indices.
The composite index S
The Canadian dollar was worth 74.45 US cents, compared to 74.32 US cents on Tuesday.