(New York) The New York Stock Exchange was down on Tuesday, continuing the consolidation that began on Friday after several weeks of gains, although the tech sector resisted the correction.
Around 10 a.m. EST, the Dow Jones was down 0.57%, the NASDAQ index was down 0.32%, and the broader S
“We had a series of hikes thanks to the hope that the Fed (US central bank) would take a break, which it did, and the appetite for artificial intelligence (AI),” recalled Adam Sarhan of 50 Park Investments.
“But we went too far, too fast,” the manager said. “It’s not normal to see the NASDAQ go up eight weeks in a row. The market is therefore ripe for a correction. The question is how big and how long. »
The correction movement could be accentuated by the approach of the end of the quarter, which often encourages institutional investors to take profits, reminds Adam Sarhan.
After several days of increases, bond rates eased slightly. The yield on 10-year US government bonds was 3.72%, down from 3.76% at the close on Friday.
For Patrick O’Hare of Briefing.com, many operators are in a waiting position, not ruling out a new rise, fueled by investors who reallocate funds to equities “for fear of missing out on higher returns”. .
Wall Street continues to doubt the very aggressive positioning of the Fed, whose members expect, by a large majority, a new round of rate hikes by the end of the year.
New York’s enthusiasm also stems from the impression that “the (American) economy can avoid an emergency landing”, according to Patrick O’Hare.
This view was supported by the indicator of the day, namely housing starts, which jumped by almost 22% year on year in May, to their highest level in 13 months, despite the tightening of credit conditions.
On the odds, AI stars remained in demand, including Nvidia (0.86%), Amazon (0.54%) or data analysis specialist Palantir (0.74%).
Alibaba retreated after the announcement of a reshuffle of the group’s management, with the appointment of two close to the co-founder and emblematic personality of the Chinese giant, Jack Ma, as president and general manager.
Electric vehicle maker Rivian rose (4.37%) after unveiling an agreement with rival Tesla that will give owners of its cars access to the company’s network of chargers led by Elon Musk.
Another Tesla competitor, Nikola, jumped (7.14%) after revealing a social plan on Friday that will reduce its workforce by almost a quarter and should allow the Phoenix (Arizona) group to preserve its cash.
Lazard was ahead (1.37%), after several media outlets reported on talks held earlier this year with Abu Dhabi’s sovereign wealth fund, ADQ, for a possible takeover of the investment bank .
Eli Lilly progressed (1.40%) after reporting the takeover of the Dice Therapeutics laboratory (37.47%), specializing in the treatment of autoimmune diseases, for 2.4 billion dollars.
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