2023-09-22 20:05:33
The New York Stock Exchange ended down on Friday, unable to shake off the impression left by the communication from the Federal Reserve (Fed), which pushes part of the market to fear for the American economy.
The Dow Jones lost 0.31%, the Nasdaq lost 0.09% and the broader S&P 500 returned 0.23%.
“The market has set its record straight, (…) and this vision of higher rates for longer weighs on stocks and their valuation,” commented Kurt Spieler, of FNBO.
The session had, however, started in the green, on what seemed a technical rebound, stimulated by a decline in bond rates, which had risen to record highs. The yield on 10-year US government bonds thus fell to 4.43%, compared to 4.49% the day before at closing.
“Initially, traders were hoping to see buying resume,” said Steve Sosnick of Interactive Brokers. “We could have expected a jump after two bad sessions, especially yesterday’s. But the momentum has faded.”
The approach of the weekend did not help, argues the analyst. “People didn’t want to stay in a buying position” as the two-day pause could lead to a sharp and uncertain reaction on Monday.
The offensive statements of a Fed governor, Michelle Bowman, drove home the point already driven by the Fed on Wednesday. The official said she expected another rate hike in the coming months.
The president of the Fed branch in Boston, Susan Collins, echoed him by assuring that “a further tightening (was) clearly not ruled out”.
The day’s indicators confirmed the impression of an American economy which refuses to bend, which is likely to push the Fed to remain mobilized against inflation.
In the United States, the composite PMI index (all sectors combined) thus highlighted an expanding American economy (50.1 points, or above the 50 which indicates stability), even if its pace is slowing.
“The risk is increasing of seeing them cause a forced landing of the economy,” according to Steve Sosnick, which is making the New York market nervous.
On the stock market, Ford rose (+1.89%), after the president of the UAW automobile union, Shawn Fain, reported “real progress” in negotiations on a new collective agreement, while the strike has been going on for a week.
“At GM (-0.40%) and Stellantis (+0.10%), it’s a different story,” added the manager, who announced work stoppages in 38 spare parts distribution centers.
The news of this breakthrough at Ford worked against Tesla (-4.23%), often considered the big potential winner of a long strike.
Activision was sought after (+1.70%) after the British Competition Authority, the CMA, considered that the sale, by the video game publisher, of online gaming rights to French Ubisoft, “responded to previous concerns and opened the way” to its acquisition by Microsoft (-0.79%).
Amazon (-0.16%) did not benefit from the announcement of the addition of advertisements to the Prime Video service. Subscribers who want unclaimed content will have to pay $2.99 per month.
Arm recorded a sixth session of negative growth in a row (-1.61%), after a first jump (+24.69%) for its first day of trading, September 14. The title, which is now worth $51.32, is approaching its IPO price ($51), below which it briefly fell on Thursday.
After initially experiencing the announcement of the resignation of its emblematic boss, Rupert Murdoch, on Thursday, the media group Fox Corp lost 2.50%. The other branch of the Australian-born tycoon’s empire, News Corp, lost 1.20%.
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