2023-05-31 20:07:20
The New York Stock Exchange ended slightly lower on Wednesday, the last session of the month, pending a key vote to resolve the raising of the US debt ceiling.
The Dow Jones index fell 0.41% to 32,908.27 points, the tech-heavy Nasdaq fell 0.63% to 12,935.29 points and the S&P 500 fell 0.61% to 4,179.83 points.
Over the month, the Dow Jones lost more than 3%, while the Nasdaq gained some 6% and the S&P 500 gained 0.5%.
“Stocks have lost momentum even as debt concerns wane,” noted Jose Torres, economist for Interactive Brokers.
“A rise in job openings in the United States and weak economic data from China undermined investor sentiment for this last session of the month,” he added.
Optimism about the likelihood of averting a default in the United States has grown after a House of Representatives committee voted in favor on Tuesday night on the compromise proposed by the White House and the chief of the Republican opposition.
The House of Representatives still has to vote on Wednesday evening, at 00:30 GMT, before the Senate this weekend.
On the economic data front, the Jolts job vacancies survey in April surprised with its dynamism with 10.1 million job vacancies compared to 9.8 million last month.
“This increase in job vacancies increases workers’ ability to negotiate upwards, which conflicts with the search for a slowdown in prices,” said Jose Torres.
The Beige Book, the last economic report published by the American central bank (Fed) before its monetary meeting in mid-June, has meanwhile reported stable activity, with weak growth over the past six weeks.
Finally, investors were also put off by the latest indicators from China. “The PMI report on manufacturing activity was depressing,” commented Edward Moya, an analyst at Oanda.
As for the Fed, its future vice-president Philip Jefferson declared himself in favor of a pause in rate hikes in mid-June, in order to take the time to observe the evolution of the economy.
– AI frenzy deflates –
Listed, the automotive spare parts chain Advance Auto Parts collapsed by 35.04%, after announcing a reduction in its dividend due to a poor first quarter, which could continue for the rest of Europe. year, management said.
Nvidia, the processor manufacturer boosted by demand for artificial intelligence (AI), fell back from its heights (-5.68%) after briefly passing the 1 trillion capitalization mark on Wall Street on Tuesday.
Semiconductor company Marvell Technology, whose stock had benefited from the AI frenzy, fell 7.74%.
C3ai, a software company also focused on AI, whose share price had almost quadrupled since the start of the year, fell 8.96%.
On the bond market, yields fell to 3.61% against 3.68% for those at ten years and to 4.37% against 4.45% for those at two years.
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