(New York) The New York Stock Exchange ended sharply lower on Tuesday, scalded by an indicator testifying to a still strong American job market, which pushed bond rates to new heights.
The Dow Jones fell 1.29%, the NASDAQ index lost 1.87% and the broader S index
As in previous sessions, the tempo was dictated by the bond market, which saw the yield on 10-year US bonds catapulted to 4.80%, a first in over 16 years.
The 30-year rate has also heated up, reaching its highest since September 2007, as has the yield on the 5-year maturity.
The new bout of interest rate fever was favored by the publication of the so-called JOLTS report on the movements experienced by the labor market in August. He highlighted the rebound in job offers (7.8% compared to July), which demonstrates the robustness of the American economy.
“The Fed is not going to make a monetary policy decision based on this report, but it nonetheless maintains the risk of a further rate increase” by the end of the year, commented, in a note, Nancy Vanden Houten of Oxford Economics.
Operators now give the same probability to a final increase in the key rate by the end of the year as that of a status quo, whereas they saw this hypothesis as very rare just a month ago.
The report “put a drag on bond rates,” said Tom Cahill of Ventura Wealth Management, who sees the 10-year yield testing 5%. “Then I think they’ll lose momentum. »
But immediately, the analyst emphasizes that the S
Pushing this threshold downward “would probably trigger panic selling by some investors or algorithms,” according to Tom Cahill, who nevertheless sees the market regaining support subsequently, if bond rates fall.
On the market, the Novavax laboratory (8.18%) benefited from the marketing authorization of its new vaccine against the coronavirus.
In the same sector, the title of the American pharmaceutical group Eli Lilly dropped 2.43%. It plans to buy the biotech Point Biopharma (84.89%) for around $1.4 billion, in order to strengthen its position in cancer therapies, according to a joint press release.
With this operation, Eli Lilly – one of the largest producers of insulin in the world – will acquire a targeted therapy for prostate cancer, using radioligand therapy.
Airbnb suffered (-6.47%) from a note from KeyBanc which estimated that the momentum the platform had enjoyed coming out of the pandemic was running out of steam. On Monday, managing director and co-founder Brian Chesky said the time had come to “put the house in order”, citing user criticism, particularly regarding prices considered too high.
The Toronto Stock Exchange closed Tuesday at its lowest level since October 2022, the victim of a decline that caused even sharper declines in American markets.
The composite index S
The prospect of another interest rate hike from the Fed also put pressure on the Canadian dollar, which traded at an average rate of 72.93 US cents, down from its previous rate. Friday’s average of 73.96 US cents.
