(New York) The New York Stock Exchange opened lower on Monday, frightened by the irresistible rise in bond rates and the prospect of a new suspension of state services due to a budget impasse.
Around 10:05 a.m. ET, the Dow Jones was down 0.24%, the NASDAQ index was near breakeven (-0.01%), and the broader S
“A certain lethargy has taken hold of the stock market, whose participants are exhausted by the rise in bond yields and the idea that the key rate (of the American central bank) could rise further,” commented, in a note, Patrick O’Hare, from Briefing.com
The yield on 10-year US government bonds thus rose to 4.53% on Monday, a first in almost 16 years, compared to 4.43% at the close on Friday.
This context weighed on stocks, which “are experiencing a decline”, which began several weeks ago, according to Sam Stovall of CFRA.
This is, according to him, “a moderate correction” which could see the market flattened by 5% to 10%, the S
However, the analyst sees Wall Street recovering during the last two months of the year. “We’re not done with this bull market,” anticipates Sam Stovall.
Investors were also worried about the budget impasse in Congress, which could lead the US government to suspend part of its activities as of October 1, due to lack of sufficient funding.
A sign of renewed nervousness in the New York market, the VIX index, which measures market volatility, returned to heights more frequented for a month.
On the stock market, among the giant capitalizations of the technology sector, Amazon was doing well (0.97%), after unveiling a major investment in the so-called generative artificial intelligence (AI) start-up Anthropic.
According to the Wall Street Journal, the Seattle group will immediately inject $1.25 billion and could increase its stake to $4 billion depending on certain criteria.
Only Netflix (0.91%) benefited from the agreement in principle between the Hollywood screenwriters’ union and the studios, which must end a strike that began almost five months ago. Disney (-0.27%), Paramount Global (-0.95%) and Warner Bros Discovery (-1.44%) were all in the red.
HP was floating despite Berkshire Hathaway, Warren Buffett’s holding company, selling 4.8 million shares of the computer maker last week, according to a document released Friday by the stock regulator, the SEC.
Boeing (-0.78%) did not benefit from the order placed by Air Canada, which purchased 18 787-10 Dreamliner aircraft, the first of which are to be delivered at the end of 2025. At list price, the order represents approximately six billion dollars.
The Rite Aid pharmacy chain fell (-17.24%) after the Wall Street Journal reported discussions between the group and its creditors with a view to filing for bankruptcy. According to the daily, the Philadelphia company has proposed closing 400 to 500 branches as part of a backup plan.