(New York) The New York Stock Exchange ended divided on Tuesday, ahead of a Fed decision, with the NASDAQ hitting a new record, powered by Apple, while the bond market benefited from nervousness in Europe.
The NASDAQ gained 0.88% to 17,343.55 points, the S
The action was celebrated after the company unveiled Apple Intelligence on Monday, its new generative artificial intelligence nomenclature which will now equip its devices, from the iPhone to the Mac.
On the bond market, US rates, which move in the opposite direction to bond prices, fell to 4.39% from 4.46% the day before for ten-year rates, showing a sudden interest from global investors in safe values .
“We have certainly seen movements of capital leaving French bonds towards German bonds or those of the American Treasury,” Karl Haeling, analyst at the LBBW bank, told AFP, recounting “the rumor”, which captured the markets, of a resignation of President Emmanuel Macron in the event of failure in the legislative elections.
The French head of state indicated that he ruled out any resignation.
“Investors fear that an upheaval on the right […] in the European Parliament will weaken the EU’s economic integration efforts,” also estimated Art Hogan, analyst at B. Riley Wealth Management.
The greenback rose against the euro for the second consecutive session. Around 4 p.m. Eastern, the European currency was down 0.22% against the dollar at $1.0741 per euro.
On the equities side, investors sought to position themselves before the outcome of the monetary meeting of the American central bank (Fed) on Wednesday and also before the publication of American inflation for May the same day.
But the Fed must publish new forecasts and investors are watching for any indication of future rate cuts. Not counting President Jerome Powell’s press conference
As for inflation, analysts expect the CPI price index to rise 0.1% in May to remain at 3.4% year-on-year, according to MarketWatch.
On the value front, besides Apple, most of the “Magnificent Seven” performed well: Microsoft gained 1.12%, Alphabet 0.88% and Meta 0.97%.
Leading the Dow Jones, Goldman Sachs lost 2.05%, JPMorgan 2.63%, Travelers Insurance fell 1.69%.
Boeing, also a Dow Jones heavyweight, fell 2.43% as it reported a poor order book.
The aircraft manufacturer, which has been facing production problems and their consequences since the beginning of 2023, only received three net orders in May and delivered only 24 commercial aircraft.
Automaker General Motors gained 1.35% after raising its dividend 33% and launching a $6 billion share buyback program.