(New York) The New York Stock Exchange opened lower on Tuesday, hampered by the lack of clear progress on the US debt ceiling file, and struggling to exceed important technical thresholds on the upside.
By 9:55 a.m. EST, the Dow Jones fell 0.18%, the NASDAQ index fell 0.16%, and the broader S
“Despite comments last night from President (Joe) Biden and Speaker of the House of Representatives (Kevin) McCarthy, who called their discussions ‘productive’, the market remains concerned about the extreme positions of each camp,” commented Quincy Krosby of LPL Financial.
If Kevin McCarthy estimated, at the end of his interview with the Head of State, that the exchanges had been the “best since we are talking”, no significant progress seems to have been made, less than ten days from the deadline. to avoid a US default.
“Traders seem tired of all this talk and lack of action to raise the debt ceiling,” Patrick O’Hare of Briefing.com added in a note.
Even if Wall Street is not showing excessive tension for the moment, a few indicators have already turned orange.
The VIX index, which measures market volatility, rose 3.8% on Tuesday.
The nervousness can also be seen in the bond market, where the yield on 3-month US government bonds rose to its highest level in 22 years, at 5.29%.
Rates also tightened on long-term maturities. The yield on 10-year US government bonds was 3.73%, compared to 3.71% the day before closing.
“The debt ceiling psychodrama has been a recurring disturbance lately, but there are other elements to add to it, such as the specter of further rate hikes” by the US central bank (Fed), explained Patrick O’ Hare.
Added to this is Wall Street’s inability to cross some important technical thresholds upwards, after the S
“The 4200 point threshold is difficult for the S
On the stock market, the DIY chain Lowe’s (1.77%) benefited from better than expected results, even if the group lowered its annual forecast, this in order to take note of “lower demand than expected for expenditure not essentials,” explained CEO Marvin Ellison.
The major retail chains are considered a barometer of consumption in the United States, the heart of the American economy.
Elsewhere on the stock exchange, semiconductor maker Broadcom (0.98%) was buoyed by the announcement of a multi-billion dollar deal with Apple, to which it will supply components for 5G network connectivity.
The SEO and evaluation platform for shops and restaurants Yelp climbed (9.55%). The Wall Street Journal reports that the activist investment fund TCS Capital Management, which controls 4% of the capital, will ask the management of the social network to study a possible sale to a technology group.
Already well oriented on Monday, the regional bank PacWest was again sought after (19.55%). The Californian establishment’s price has more than tripled (230%) since its low in early May, when it appeared to be a possible victim of the banking crisis.
Other regional brands recently targeted by investors raised their heads, such as Bank of Hawaii (3.28%) or Zions (4.56%).
