(New York) After the euphoria of Nvidia’s results, the New York Stock Exchange fell back into the red on Thursday, on the eve of an intervention by the head of the American central bank (Fed) at the Jackson Hole meeting, in the United States. UNITED STATES.
The Dow Jones index ended down 1.08% at 34,099.42 points, the tech-heavy NASDAQ, which had started strong, lost 1.87% at 14,463.97 points. THE
“The market fell once the euphoria around Nvidia had evaporated,” the star of the artificial intelligence sector which blew up the most optimistic forecasts when it published its quarterly results on Wednesday evening after the close, underlined Peter Cardillo from Spartan Capital.
Nvidia shares, which have been gaining momentum since the start of the week, ended flat Thursday (0.10%) at 471.63 dollars after having approached 500 dollars at the opening.
“I believe investors are positioning themselves for Fed Chairman Jerome Powell’s speech on Friday” at the central bankers’ meeting in Jackson Hole, Wyoming, Cardillo explained.
“In my opinion, there will be a little for everyone, for hawks like doves”, calculated the analyst using the language of specialists who evoke on the one hand the partisans of a strict monetary policy (with high rates to fight against inflation) and on the other, those in favor of more flexibility to preserve employment.
For LBBW’s Karl Haeling, so far the market has expected Powell to argue for “higher rates for longer”.
“But since then, greater economic doubts” – especially after mixed results from retailers – “could suggest a more balanced monetary policy message that could encourage buying” on the stock market, said the specialist.
In the bond market, yields on ten-year Treasury bills have risen a little, which is generally not favorable for equities.
Around 4:30 p.m., they were at 4.23% against 4.19% the day before, those at two years rose to 5.02%.
The dollar strengthened against the euro (0.52%) as well as against the main currencies.
As for the indicators, a new sign of the resilience of the job market in the United States, new weekly applications for unemployment benefits fell from 10,000 to 230,000, a figure lower than analysts’ expectations.
At the same time, a fall in orders in transport, in particular air transport, weighed on durable goods orders, which fell by 5.2% in July.
The aircraft manufacturer Boeing has also announced that it has identified a defect on an element of the 737 MAX which will again disrupt deliveries of its flagship aircraft. The stock fell nearly 5% to $217.
Telephone operator T-Mobile slipped 2.21% as it announced the upcoming cut of nearly 5,000 jobs, or almost 7% of its workforce. The group will take a pre-tax charge of $450 million for this, but the company has nonetheless confirmed its targets for its 2023 financial year.
Dollar Tree, the discount chain, fell almost 13%, reflecting disappointing results as many retailers mentioned concerns about skittish consumers and an upsurge in theft.
Struggling fashion chain Gap, which closed down 1.24% at $9.53, was losing as much in electronic trading after disappointing results. Quarterly sales fell 8% year-on-year.
Canada’s main stock index fell more than 100 points on Thursday amid broad-based weakness.
The composite index S
In the currency market, the Canadian dollar traded at 73.72 cents US, down from its average price of 73.79 cents US on Wednesday.
