(NYC) The New York Stock Exchange was trading lower on Wednesday shortly after the open, still concerned about global economic conditions and the specter of a return to high inflation as oil prices soar.
Around 10 a.m. EST, the Dow Jones was down 0.38%, the NASDAQ index was down 0.63%, and the broader S
“Investors remain hesitant to buy after rising bond yields and oil prices,” Briefing.com’s Patrick O’Hare said in a note.
“If we add to that the appreciating dollar, it gives rise to concern about what the Fed (American central bank) is going to do,” added Art Hogan of B. Riley Wealth Management.
After having ruled out the scenario of a new rate increase in November or December (no change is expected in September), operators now give it a probability almost equal to that of a status quo (44%).
At their highest for almost ten months on Tuesday, oil prices stabilized on Wednesday, as did bond rates.
The yield on ten-year US government bonds was 4.28%, compared to 4.25% the day before closing.
Still, the mood remained risk averse, noted Art Hogan, “at least in the short term. […] Since we kicked off September,” statistically the worst month of the year for stocks, “investors have been waiting.”
Among the few indicators of the day, mortgage applications in the United States fell last week to their lowest level in more than 26 years, despite a slight decline in the average loan rate, according to the American Association real estate credit institutions (MBA).
On the stock market, Apple fell back (-2.45%), after a report from the Wall Street Journal, according to which the Chinese government ordered state agencies and their employees to no longer use iPhones. Asked by AFP, Apple did not react immediately.
Apart from Apple, giant technology stocks were subject to profit taking, notably Nvidia (-3.17%), two weeks after an all-time high following still sparkling results.
Moderna declined (-1.76%), despite the publication of clinical results showing that the new version of its coronavirus vaccine was effective against the new BA.286 variant, considered capable of evolving further and spreading more easily than his predecessors.
The Canadian oil pipeline giant Enbridge lost ground (-5.70%) after the announcement, Tuesday after the stock market, of the acquisition of assets from the American energy company Dominion Energy (-0.88%), for 14 billion euros. dollars in total including debt.
Supported by the firmness of black gold prices, oil companies were sought after, from Chevron (0.23%) to ExxonMobil (0.48%).
Cinema operator AMC (-20.56%), whose share price is extremely volatile, paid for the announcement of a program to issue 40 million new shares, the proceeds of which will be used, according to the group, to deleverage and strengthen its cash position.
Manchester United continued to slide (-3.09%), amid doubts about the sale of the club by the Glazer family, majority shareholder.