(New York) The New York Stock Exchange ended in a mixed bag on Wednesday, with tech mega-caps dragging the NASDAQ down as investors shifted to small caps.
The Dow Jones index gleaned 0.27% to 33,665.02 points, the tech-heavy NASDAQ fell 1.29% to 13,104.89 points and the broader S
The rotation of investors’ positions at the expense of the technology sector, and in particular the NASDAQ 100 which brings together the 100 biggest names in the sector, accelerated at the start of the session when the Bank of Canada raised its rates to the surprise of investors. analysts.
“Stocks declined after Canada’s central bank restarted its rate hike campaign, spooking investors,” commented Edward Moya of Oanda.
The Canadian central bank is often considered to have a proactive role in monetary policy. It was the first to raise rates in 2022 and also the first to take a break.
Here it is, on Wednesday raising its main key rate by 0.25 points, to 4.75%, three months after being the first major central bank to pause in its turns of the screw.
“The Bank of Canada has signaled that further hikes may be in the offing which has led everyone to rethink the idea that the US Federal Reserve (Fed) will be done with rate hikes after July,” added Edward Moya.
In the bond market, yields on ten-year Treasury bills jumped to 3.78% from 3.66%.
For Adam Sarhan of 50 Park Investment, “money is rotating from leading indices like the NASDAQ and NASDAQ 100 to indices that were lagging like the Russell 2000 which brings together small capitalizations.
The NASDAQ 100, which hit a year-high on Monday, lost 1.75% while the Russell 2000 gained 1.88%.
“Money flows from one sector to another, that’s what keeps the market dynamic and that’s good,” the analyst added, noting that the regional banking and retail sectors had been sought after. .
The regional bank PacWest, once considered the new weak link in the American banking system, jumped 14.37% to 9.15 dollars.
Department stores Nordstrom gained 4.92%, Macy’s took 1.95%.
Tech mega-caps fell sharply like Microsoft (-3.09%), Amazon (-4.25%) and Alphabet (-3.89%).
Tesla, on the other hand, gained 1.47% the day after an appeal decision by a Delaware court, which again rejected the request of shareholders of the manufacturer denouncing the conditions of the takeover of the manufacturer of solar panels SolarCity .
The food group Campbell Soup, made famous by Andy Warhol, offloaded 8.91% despite results that exceeded expectations and the confirmation of its annual forecasts. However, its margins have eroded.
Cryptocurrency exchange Coinbase rallied 3.20% after a tough day the previous day that saw the stock fall 12.09%.
Targeted by a lawsuit from the American market policeman, the SEC, which accuses it of not having registered with it, the platform benefited from the announcement of the investment company ARK, which acquired 400,000 Coinbase shares.
The Toronto Stock Exchange closed lower on Wednesday as the market digested the announcement of an interest rate hike by the Bank of Canada.
The composite index S
In the currency market, the Canadian dollar traded at an average rate of 74.76 cents US, up from 74.52 cents US on Tuesday.