(New York) The New York Stock Exchange fell on Thursday, ending a streak of 13 positive sessions in a row for the Dow Jones, which fell short of an all-time high (14), after indicators that revived fear of further monetary tightening.
The flagship index of the New York market lost 0.67%, the NASDAQ index dropped 0.55% and the broad index S
After starting the day in the green, Wall Street turned around during the session, chafed by the day’s macroeconomic data, in particular the gross domestic product (GDP) of the United States.
US growth thus rose by 2.4% in the second quarter on an annual basis, i.e. above expectations (2.0%) and its rate for the first three months of the year (also 2.0%). ).
“It’s too high,” commented Cresset Capital analyst Jack Ablin. “This is not in line with expectations that the Fed was done” with its monetary tightening cycle.
As a result, bond yields took off. The yield on 10-year US government bonds stood at 4.00% for the first time in two weeks, against 3.86% the previous day at the close.
Fed rates “are going to stay high for a long time,” warned FHN Financial analyst Christopher Low.
However, operators still attribute only a one-third probability to a further hike in the Fed’s key rate by the end of the year, after the new hike made on Wednesday.
“I think the market continues to underestimate the Fed’s determination to tackle high inflation,” warns Tastylive analyst Christopher Vecchio.
The fact that, despite a unique-in-the-modern-era monetary tightening in the United States, the U.S. economy remains steadfastly growing “gives even more room (for the Fed) to accomplish (its) mission” and curb inflation , insists the analyst.
Thursday, the Dow Jones missed the record of 14 consecutive sessions in the green, which dates from 1897, weighed down by a few slippages, among them Honeywell (-5.69%).
The industrial conglomerate paid quarterly revenue slightly below expectations, weighed down by its real estate services business, although it beat forecasts for profit and raised its annual guidance.
Also suffered American Express (-2.47%) and the cable operator Verizon (-2.30%).
Lonely, another prominent member of the Dow Jones, McDonald’s (1.18%), could not reverse the trend.
The Chicago (Illinois) group reported second-quarter like-for-like revenue growth of 11.7%, which was boosted by price increases, with all regions of the group posting double-digit growth.
On the NASDAQ side, Meta looked set to pull the whole index on its own, but after gaining up to almost 9%, it had to settle for less than half (4.40%).
The group from Menlo Park (California) nevertheless recorded a peak of more than 18 months. Since early November, Meta’s capitalization has more than tripled (253%).
The social networking giant had published, on Wednesday after the close, results that exceeded expectations in the second quarter. In particular, it recorded an 11% increase in its turnover thanks, in part, to better advertising targeting, facilitated by artificial intelligence.
Elsewhere on the stock market, Southwest Airlines (-8.94%) stumbled after reporting rising costs.
Sourcing spending also increased at Chipotle (-9.81%), as the Mexican-inspired fast food chain reported lower-than-expected revenue.
Rubber clog manufacturer Crocs also fell (-14.61%), despite better than expected results and an increase in its annual forecast. Investors sanctioned the slowdown of its shoe brand Hey Dude, acquired in early 2022.
The Toronto Stock Exchange fell almost 200 points on Thursday, dragged down by weakness in most of its sectors, in particular that of the telecommunications and utilities groups, while the major American indices also retreated. .
The composite index S
In the currency market, the Canadian dollar traded at an average rate of 75.75 cents US, up from 75.64 cents US on Wednesday.
On the New York Commodities Exchange, crude oil rose US$1.31 to US$80.09 a barrel, while natural gas returned US$10 cents to US$2.60 a barrel. million BTUs.
The price of gold returned US$24.40 to US$1945.70 an ounce and that of copper depreciated 3 US cents to US$3.88 a pound.
