(New York) The New York Stock Exchange, expecting ahead of US inflation to be released on Wednesday, ended loosely around breakeven on Monday in a calm market where bond yields rose a bit, however.
The Dow Jones index fell 0.17% to 33,618.69 points, the tech-heavy NASDAQ edged down 0.18% to 12,256.92 points and the broader S
The start of the week was slowed by the closure of the London market for celebrations linked to the coronation of Charles III, coupled with a sleepy Parisian market due to a public holiday.
“The market remained in a wait-and-see mode ahead of US inflation data on Wednesday,” Angelo Kourkafas, investment strategist for Edward Jones, told AFP.
“This is a key point for investors, some of whom are expecting a pause, or even a pivot [change of direction] from the Federal Reserve at some point this year, on interest rates,” he said. he explained.
For Peter Cardillo of Spartan Capital, Wall Street should continue to oscillate like this not far from equilibrium until the publication of the consumer price index.
The CPI is due Wednesday and may have accelerated in April to 0.4% from 0.1% in March, notably due to a rebound in energy prices, according to Briefing.com forecasts.
On the bond market, yields tightened a little after the publication of the last quarterly survey of the Federal Reserve (Fed) on credit conditions, carried out among banks (SLOOS survey). The rates on two-year bills rose to 4.00% against 3.91% on Friday and those on ten years to 3.51% against 3.43%.
The survey of 84 banks in the United States showed that access to credit was made more difficult in early 2023 and that banks plan to tighten it further this year.
“If loan terms get tougher that means a lot of people won’t be able to borrow, obviously that’s not very good,” commented Peter Cardillo.
For Angelo Kourkafas, however, the release of the survey had little impact on the market because “Fed Chairman Jerome Powell had already mentioned it last week during his press conference”. The investigation came out “in line with expectations, it was not a surprise”, he said.
Edward Moya of Oanda pointed out that “the commercial real estate sector would soon experience more difficulties”. “This key survey is likely to support the idea of a possible recession in the third quarter,” added the analyst.
On the stock market, regional banks which suffered last week before recovering on Friday continued to move into positive territory. PacWest advanced 3.65%, Zions Bancorporation 2.10% and Western Alliance 0.59%. “The banking system is well capitalized,” Treasury Secretary Janet Yellen told CNBC after the close.
Among the quarterly results, Disney (2.45%) will announce its results on Wednesday and analysts expect a significant increase in the number of its subscribers to the Disney streaming service.
US medical equipment maker Baxter International fell 0.96% after announcing the sale of its biopharma subsidiary for $4.25 billion to investors Advent International and Warburg Pincus.
On the economic policy front, the tussle over the debt ceiling between the Democratic administration and Republicans in Congress will gain intensity this week. Tuesday President Joe Biden organizes a face-to-face with the leaders of the parliamentary opposition, to try to find a compromise.