New York Stock Exchange Falls on Global Economic Concerns and Inflation Fears

New York (awp / afp) – The New York Stock Exchange moved lower on Wednesday shortly after the opening, still concerned about the global economic situation and the specter of a return to high inflation with the surge in oil prices.

Around 2:00 p.m. GMT, the Dow Jones dropped 0.38%, the Nasdaq index yielded 0.63% and the broader S&P 500 index lost 0.51%.

“Investors remain hesitant to buy after rising bond yields and oil prices,” said Patrick O’Hare of Briefing.com in a note.

“If we add to that the dollar which appreciates, it gives concern as to what the Fed (American central bank) will do,” added Art Hogan, of B. Riley Wealth Management.

After ruling out the scenario of a new rate hike in November or December (no change is expected in September), operators now give it a probability almost equal to that of a status quo (44%).

At their highest for almost ten months on Tuesday, oil prices stabilized on Wednesday, as did bond rates.

The yield on ten-year US government bonds stood at 4.28%, against 4.25% the day before closing.

However, the mood remained risk averse, noted Art Hogan, “at least in the short term. (…) Since we started September”, statistically the worst month of the year for equities , “investors are waiting”.

Among the few indicators of the day, mortgage applications in the United States fell last week to their lowest level in more than 26 years, despite a slight decline in the average loan rate, according to the American Association real estate credit institutions (MBA).

On the side, Apple fell back (-2.45%), after information from the Wall Street Journal, according to which the Chinese government has ordered state agencies and their employees to no longer use iPhones. Asked by AFP, Apple did not react immediately.

Apart from Apple, giant technology stocks were subject to profit taking, notably Nvidia (-3.17%), two weeks after an all-time high following still sparkling results.

Moderna fell (-1.76%), despite the publication of clinical results showing that the new version of its coronavirus vaccine was effective against the new variant BA.2.86, considered capable of evolving further and spreading more easily than its predecessors.

The Canadian oil pipelines giant Enbridge lost ground (-5.70%) after the announcement, Tuesday after the stock market, of the acquisition of assets from the American energy company Dominion Energy (-0.88%), for 14 billion euros. dollars in total including debt.

Supported by the firmness of black gold prices, oil companies were sought after, from Chevron (+0.23%) to ExxonMobil (+0.48%).

Cinema operator AMC (-20.56%), whose share price is extremely volatile, paid for the announcement of a program to issue 40 million new shares, the proceeds of which will be used, according to the group, to deleverage and strengthen its cash position.

Manchester United continued to slide (-3.09%), amid doubts about the sale of the club by the Glazer family, majority shareholder.

afp/lk

2023-09-06 14:38:03
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