(New York) The New York Stock Exchange ended on a mixed note Thursday, with the strong performance of the US economy outweighing the prospect of further monetary tightening, which sent bond yields soaring.
Contrary to the trend observed since the beginning of the year, the Dow Jones fared well and gained 0.80%, while the NASDAQ index, usually the powerhouse of Wall Street, ended in equilibrium . The S index
The session had started in the red after the publication of several stronger than expected indicators.
US gross domestic product (GDP) was revised up to 2.0% for the first quarter year-on-year from 1.3% initially reported, while weekly new jobless claims posted their biggest drop in a year. week since 2021.
This data “reinforces the likelihood that the US central bank (Fed) will remain considerably more aggressive than investors anticipate,” commented Jose Torres of Interactive Brokers.
Traders now assign a probability of more than 40% to the assumption of two more rate hikes from the Fed by November.
The bond market was shaken by these indicators. The yield on 2-year US government bonds rose to 4.89%, the highest in nearly four months.
This brutal tension penalized stocks in the technology sector, whose strong growth depends on financing conditions.
Amazon (-0.88%), Nvidia (-0.72%) and Meta (-1.32%) all took a step back.
However, the equity market as a whole ended up recovering.
It owes much of it to the banking sector, buoyed by the publication by the US central bank (Fed) of results of annual stress tests (stress tests), better than last year for all of the 23 main US banks. .
Goldman Sachs (3.01%), Wells Fargo (4.51%) or JPMorgan Chase (3.49%) were all sought.
In their wake, regional or medium-sized banks also rose, like the Californian brand PacWest (3.31%) or the Texan Comerica (1.76%).
“It’s encouraging to see that even with (the jump in rates), the market isn’t pulling back,” observed Tom Cahill of Ventura Wealth Management, noting that “investors are starting to get used to the idea that a soft landing of the economy is possible. »
In addition to the banks, certain values neglected in recent weeks have paraded, such as Caterpillar (0.98%), Boeing (0.53%) or Dow (0.53%).
“We have a small rotation from growth stocks to industrials or banking and others with reasonable valuations,” said Tom Cahill.
Space tourism company Virgin Galactic was the subject of profit taking (-10.76%) after its first successful commercial flight on Thursday, with the Italian Air Force as a client, a milestone for the group founded almost twenty years ago.
The ghost BlackBerry advanced (6.99%), after doubling its revenues over one year thanks to a strategic repositioning which moved the group from smartphones to cybersecurity software in particular.
The electric car sector remained well oriented, after the bankruptcy filing of the American manufacturer Lordstown on Tuesday, which benefits its competitors, whether Tesla (0.49%), Rivian (9.36%) or Lucid (7.17%).
United Airlines made a forced landing (-4.58%), forced by the cancellation of hundreds of flights for several days, which the airline attributed to personnel problems and a lack of air traffic controllers.
The Toronto Stock Exchange closed with a gain of nearly 100 points on Thursday, fueled by stocks in the energy and financials sectors, while the major American indices closed in mixed order.
The composite index S
In the currency market, the Canadian dollar traded at an average rate of 75.44 US cents, down from 74.45 US cents on Wednesday.
