(New York) The New York Stock Exchange opened lower on Tuesday, scalded by a new sign of the vitality of American consumers, which raises fears of greater monetary tightening from the Federal Reserve (Fed).
Around 9:55 a.m. ET, the Dow Jones was down 0.28%, the NASDAQ index was down 1.35% and the broader S index was down 1.35%.
The market tensed up following the publication of retail sales in the United States, which showed an increase of 0.7% over one month in September, well above the 0.3% predicted by economists.
Additionally, the previous two months, July and August, were revised upwards.
Even the core index, stripped of the most volatile components, namely energy, construction materials, automobiles and food, rose 0.6%, compared to just 0.1% expected.
“Everyone expects consumers to slow down, but if they keep this pace, it increases the likelihood that the Fed will raise its key rate in December,” commented Quincy Krosby of LPL Financial.
Today’s statistic propelled bond rates, which had already started to rise again on Monday thanks to a return of appetite for risk.
The yield on 2-year government bonds, the most representative of Wall Street’s monetary policy expectations, stood at 5.17%, compared to 5.09%, not far from its 17-year high (5 .19%) reached at the end of September.
Rates at 10 made an even more marked jump, to 4.84% compared to 4.70% the day before at closing.
“The movements in the bond market are putting a little more pressure on stocks,” observed Patrick O’Hare of Briefing.com in a note.
Giant capitalizations in the technology sector were having difficulty coping with this new surge in bond rates, which is reducing the attractiveness of their future profits.
Nvidia, the specialist in graphics processors, very popular in so-called generative artificial intelligence, was particularly affected (-6.83%), as well as semiconductor manufacturers AMD (-3.67%), Intel (-3 .88%) or Broadcom (-3.30%).
On the other hand, stimulated by consumption figures, the department store brand Macy’s (2.65%) and the supermarket chain Target (0.66%) were moving in the green.
Bank of America advanced (0.31%), after reporting quarterly results better than expectations. The establishment compensated for lower profits from asset management and personal banking with corporate services and market activities.
In the same sector, Goldman Sachs fell (-1.41%), despite better than expected results, even if they were down year-on-year. The New York brand has benefited in particular from a resurgence in investment banking and the managing director, David Solomon, said he foresees a recovery in the capital markets.
Ahead of analyst estimates, here too, Johnson
Lockheed Martin capitalized (1.87%), on results higher than expectations for the entire group, although having disappointed in the aeronautical activity. The Bethesda (Maryland) company notably mentioned lower production of the F-35 fighter plane.
The Wyndham Hotels hotel group
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