(New York) The New York Stock Exchange, which moved up and down on Thursday, ended lower, still pressurized by the rise in bond rates to a new high since 2007.
The Dow Jones index fell 0.75% to 33,414.17 points, the tech-heavy NASDAQ lost 0.96% to 13,186.18 points and the S
Yields on ten-year notes approached 5%, at 4.99% during the session, a new 16-year high.
“Rates are rising because the bond market fears that the Federal Reserve (Fed) will leave rates high for an extended period of time,” commented Pater Cardillo of Spartan Capital.
On the subject, Fed boss Jerome Powell blew hot and cold during a speech to the Economic Club of New York.
“There were both hawks and doves,” said the analyst, using the language of the Fed to designate supporters of a more severe monetary policy and those of a more flexible policy.
Mr. Powell stressed that the monetary committee wanted to be “cautious,” “which is an indication that the Fed is in no hurry to raise rates further,” said David Daco, chief economist at Ernst and Young.
On the other hand, Mr. Powell also insisted that monetary policy “is not too tight at the moment” and that the American economy appears “resilient.”
“We think the Fed is done with its rate hikes, but a rate cut will not happen before June 2024,” concluded David Daco.
In terms of indicators, there was also something for everyone.
On the one hand, weekly applications for unemployment benefits fell, to the surprise of analysts, falling below the 200,000 mark. This could indicate a still tight labor market.
On the other hand, due to high interest rates which are driving up the cost of mortgage loans, sales of existing homes have fallen to their lowest level since October 2010.
Last month, 3.96 million homes and apartments changed ownership, at an annualized rate, according to data released Thursday by the National Federation of Realtors (NAR).
This represents a decrease of 2% compared to August, and 15.4% compared to September 2022.
On the value side, Tesla (-9.30% to $220) dragged the NASDAQ down.
The electric vehicle manufacturer unveiled third-quarter results Wednesday evening that were lower than forecasts, whether for profit or turnover, which stood at $23.35 billion (9%).
The group led by Elon Musk has been weighed down by an increase in its production costs. Net profit came in at $1.85 billion, a drop of 44% year-over-year. Elon Musk has blamed high interest rates for multiple price cuts on his vehicles that have reduced his margins.
Netflix, on the other hand, soared 16.05% to $401.77. Its quarterly results were much better than expected.
The streaming giant gained nearly 9 million new subscribers (10.8%), shattering forecasts. The group attributes this success to the offering of its content, but also to the success of its new pricing for accounts shared between several users.
Regional banks had a bad day in the wake of Zions Bancorporation’s stock falling 9.67%. The Salt Lake City-based bank announced during its earnings presentation that the cost of paying deposits had increased tenfold as rates rose.
The Toronto Stock Exchange lost 100 points on Thursday, undermined by declines in the metals, utilities and financial sectors, while the major American indices also fell.
The composite index S
In New York, the Dow Jones industrial average returned 250.91 points, or 0.75 percent, to 33,414.17 points, while the broader S
In the foreign exchange market, the Canadian dollar traded at an average rate of 72.91 US cents, down from 73.07 US cents on Wednesday.
On the New York Mercantile Exchange, the price of crude oil gained US$1.10 to US$88.37 per barrel, while natural gas fell 10 US cents to US$2.96 per million. of BTUs.
Gold prices rose US$12.20 to US$1,980.50 per ounce and copper prices rose US$1 cent to US$3.60 per pound.
