2023-10-09 21:07:08
New York (AFP) – The New York Stock Exchange ended higher on Monday, reversing the trend after a start in the red and overcoming, for one session, concerns about a possible escalation in the Middle East.
Published on: 09/10/2023 – 23:07 Modified on: 09/10/2023 – 23:05
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The Dow Jones gained 0.59%, the Nasdaq index gained 0.39% and the broader S&P 500 index gained 0.63%.
The session started in the red, with investors concerned about the possible consequences of the offensive by the Palestinian Islamist movement Hamas against Israel.
But the clues ultimately crumbled only moderately.
“A lot of people expected things to go worse than they did,” said Patrick O’Hare of Briefing.com.
Noting that the New York market was holding up better than expected, many operators who had bet on a fall then sought to hedge, by buying, according to the analyst.
Despite this positive session, Wall Street remains fragile. “We have a major geopolitical risk ahead of us and no one knows how things will develop in the days and weeks to come,” warns the analyst.
“Historically, military shocks tend to have only limited influence on markets,” says Sam Stovall of CFRA.
After an inflection, they generally resume after two or three months, according to the analyst, who nevertheless indicates that the Yom Kippur War in 1973 and the first invasion of Iraq in 1990 had longer-term repercussions. .
The winners of the day were the big players in the arms and defense sector, supported by the renewed tension in the Middle East, notably Lockheed Martin (+8.93%), Northrop Grumman (+11.43 %), General Dynamics (+8.43%) and RTX (formerly Raytheon, +4.62%).
Conversely, cruise lines suffered from the deterioration in the outlook for world tourism linked to the war, such as Carnival (-4.30%) and Royal Caribeean (-2.92%).
The shock wave also hit the airlines, which suspended their connections to Israel this weekend: American Airlines (-4.08%), United Airlines (-4.88%) and Delta Air Lines (-4 .65%).
Many Israeli stocks listed in New York benefited from the weekend’s developments, including the generic drug specialist Teva (-6.37%), the integrated circuit manufacturer Tower Semiconductor (-6.61%) and the professional software publisher NICE (-3.69%).
Boosted by the rebound in black gold prices, oil stocks were in demand, like ExxonMobil (+3.50%), Chevron (+2.77%) or ConocoPhillips (+5.63% ).
© 2023 AFP
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