(Photo: 123RF)
–
MARKET REVIEW. The New York Stock Exchange was moving without a clear direction Thursday morning the day after the end of a monetary policy meeting of the American Central Bank (Fed) during which the institution considered two hikes in its key rates in 2023.
The Toronto Stock Exchange was in the green in the opening thanks to gains in its information technology sector, then retreated into negative territory shortly thereafter.
The clues
In Toronto, the S&P/TSX dropped 18 points, or 0.09%, to 20,212 points.
In New York, the S&P 500 was 2 points, or 0.05%, at 4,225 points.
The Dow Jones dropped 141 points, or 0.42%, to 33,891 points.
The Nasdaq gained 94 points, or 0.67%, to 14,134 points.
The context
Wall Street fell back on Wednesday after announcements from the Federal Reserve’s monetary policy committee.
For Charles Schwab analysts, “the Fed adopted a slightly less accommodating tone, advancing its outlook for key rate hikes after having revised upwards its growth and inflation forecasts.”
The Fed is indeed counting on an increase of 7% in US gross domestic product in 2021, against 6.5% estimated in March. Inflation is expected to hit 3.4% this year, up from an estimate of 2.4% in March.
Federal Reserve Chairman Jerome Powell, however, stuck to his positions during his press conference on Wednesday afternoon, recalling that the acceleration in inflation was, according to him, temporary and should stabilize in 2022 and 2023 .
“Uncertainty persists as to whether the Fed can carry out its policy effectively against the background of growing inflationary pressures and an acceleration of the economic recovery”, warn however the experts of Charles Schwab.
Among the values of the day, CureVac collapsed by 48.18% after the very disappointing results of the vaccine against COVID-19 developed by this German laboratory, which does not at this stage meet the performance criteria required for release.
The British insurance brokerage giant Aon was down 1.8%. The US Department of Justice announced on Wednesday that it wanted to block Aon’s takeover of its competitor Willis Towers Watson (-0.48%) on the grounds that the operation could raise prices and reduce innovation.
Ford was up 1.13% after he said he expected adjusted pre-tax profit to exceed expectations for Q2 and reported “solid” reservations for four new models, including electric versions of his popular F150 pickup and his Transit van.
Among the indicators of the day, manufacturing activity in the Philadelphia region slowed again in June, affected in particular by supply difficulties for certain components, but the general trend remains good with expectations for the next six months. highest in nearly 30 years, according to a Fed index.
– .
