The Dow Jones index fell 0.56% to 34,395.01 points, the Nasdaq advanced 0.13% to 11,482.45 points and the broader S&P 500 index remained close to balance ( -0.09%) to 4,076.57 points.
The New York Stock Exchange paused Thursday after the previous day’s jump, ending split after several mixed indicators and ahead of the US jobs report.
The Dow Jones index fell 0.56% to 34,395.01 points, the Nasdaq advanced 0.13% to 11,482.45 points and the broader S&P 500 index remained close to balance ( -0.09%) to 4,076.57 points.
Investors were torn between the good news of the confirmed slowdown in inflation for October and less good news suggesting a contraction in manufacturing activity in November.
But above all, they were waiting for the official employment figures which will be published on Friday. “The market was hesitant before the jobs report,” said Patrick O’Hare of Briefing.com.
The unemployment rate in the United States is expected to be stable, at 3.7%, with however fewer job creations than in October, at 200,000 against 261,000.
The session had started calmly after the surge the day before following the declarations of the president of the American central bank Jerome Powell signaling a rise in the rates undoubtedly more modest in December.
This outlook was reinforced by the publication before the market opened of a slowdown in inflation, according to the PCE index.
The rise in consumer prices has stalled at 6.0% over one year against 6.3% in September, according to this index favored by the Fed.
Over one month, it remained stable, at 0.3%, better than what analysts had expected, who had forecast +0.4%.
But stock market indices then slipped into the red after the release of the ISM manufacturing activity index which showed a contraction in November, the first since May 2020 at the height of the Covid-19 pandemic.
The index fell to 49%, a more significant drop than that anticipated by analysts.
“The big news was inflation which is on a downtrend and that’s good news but the reason the market hasn’t continued to rise is that the ISM index has contracted showing a new component of the economy heading towards recession”, summed up for AFP Peter Cardillo of Spartan Capital.
Patrick O’Hare also judged that the decline in manufacturing activity “raised concerns about growth”, which cooled investors.
Listed, Dow Jones member Salesforce fell 8.27% to $147 after some of its business operations reported lower-than-expected revenue. The software company has announced that Bret Taylor will step down as vice president and co-chief executive.
The title of the chain of semi-wholesale supermarkets Costco lost 6.56% to 503.86 dollars while its November sales rose less than expected year on year.
Another retailer to sink, Dollar General, the bargain goods chain fell 7.56% after it slashed its full-year profit outlook and signaled a shift in consumer attitudes away from higher-margin products for the retailer. .
On the other hand, as the year-end shopping season opens, the e-commerce site, Etsy, dedicated to artisans, was sought after, gaining 5.53%.
On the bond market, the yield on 10-year US government bonds fell to 3.51%, its lowest level in more than two months.