(New York) The New York Stock Exchange ended on a mixed note on Tuesday, both satisfied with the good health of the American economy and worried about seeing it encourage the American central bank (Fed) to further tighten its monetary policy .
The Dow Jones gained 0.04%, the NASDAQ lost 0.25% and the broader S
Strength in stocks in the base metals and battery metals sectors helped the Toronto Stock Exchange’s flagship index to close higher.
The composite index S
On the foreign exchange market, the Canadian dollar traded at an average rate of 73.28 US cents, down from 73.43 US cents on Monday.
On the New York Mercantile Exchange, the price of crude oil rose 18 US cents to US$85.44 per barrel, while that of natural gas fell 3 US cents to US$3.08 per million. of BTUs.
“The market was subject to headwinds today (Tuesday),” commented Edward Jones analyst Angelo Kourkafas.
Several economic indicators thus demonstrated the strength of the American economy, first and foremost retail sales, which increased by 0.7% over one month in September, much faster than the 0.3% announced. by economists.
In addition, the figures for July and August were revised upwards.
As for industrial production, it also surprised, showing an increase of 0.3%, over one month, in September, against 0.1% expected.
“The (American) economy enters the fourth quarter with more momentum than imagined,” noted, in a note, Michael Pearce, analyst at Oxford Economics.
“This is good news, insofar as it gives credibility to the scenario of a soft landing (of the economy),” said Angelo Kourkafas, “but at the same time, it puts bond rates under pressure “.
Yields on US Treasury bonds soared after the publication of the day’s indicators. The 2-year rate, the most representative of market expectations regarding monetary policy, rose to 5.23%, the highest in 17 years.
“The Fed certainly isn’t going to like the fact that its monetary tightening hasn’t deterred consumers from spending,” warned Gina Bolvin, an analyst at Bolvin Wealth Management Group.
Operators now assign a probability of 43% to the scenario of a further increase in the key rate in December.
Between the resilient economy and high rates, “the result was neutral” on the indices, which all finished very close to balance on Tuesday, explained Angelo Kourkafas.
The NASDAQ was dragged down by the collapse of Nvidia (-4.68%), the star stock of the electronic stock market since the start of the year.
The Santa Clara group paid for the Biden government’s announcement of new restrictions on the export of semiconductors to China.
These measures are part of a series of initiatives taken first by the government of Donald Trump, then by that of Joe Biden, to limit the access of Chinese companies to advanced equipment purchased abroad, in particular the most advanced chips.
Besides Nvidia, the entire sector suffered, from AMD (-1.24%) to Intel (-1.37%), including Broadcom (-2.01%).
On the other hand, several stocks in mass distribution, a moribund sector on Wall Street since the start of the year, were boosted by good consumption figures.
The low-cost network Dollar Tree (4.79%), the supermarket chain Target (1.05%) and the department store chain Macy’s (4.84%) all had the wind in their sails.
Bank of America rose (2.33%), after reporting quarterly results above expectations. The establishment compensated for lower profits from asset management and personal banking with corporate services and market activities.
On the other hand, its competitor Goldman Sachs fell (-1.41%), victim of falling results and net profit lower than expectations. The bank’s activity has notably declined in asset management.
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