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New York (AFP) – The New York Stock Exchange indexes paused on Wednesday, moving in scattered order after the opening, digesting several sessions up and monitoring with measured hope the discussions between Russia and Ukraine.
At 2:15 p.m. GMT, the Dow Jones gained 0.04%, the Nasdaq lost 0.37% and the S&P 500 dropped 0.22%.
Oil prices rebounded, gaining 4%, while hopes of a diplomatic breakthrough on Ukraine seemed dashed by new statements from Moscow.
Appearing to go back on announcements made after talks between belligerents on Tuesday in Istanbul, Russian presidential spokesman Dmitry Peskov said on Wednesday that he could not “report anything very promising or a breakthrough any”.
The day before on Wall Street, the Dow Jones had gained 0.97%, signing its tenth advance in twelve sessions and ending at 35,294.19 points, comforted by possible diplomatic advances concerning Ukraine.
The technology-oriented Nasdaq index rose 1.84% to 14,619.64 points. And the S&P 500 expanded, 1.23% to 4,631.60 points.
“Markets continue to watch the ceasefire talks in Ukraine, which sparked some optimism yesterday (Tuesday) about de-escalation, but skepticism remains,” Schwab analysts said in a note.
For Patrick O’Hare of Briefing.com, however, the market did not seem “too concerned about the situation” and was simply “pausing after the S&P 500’s strong rise of 11%” in ten days.
On the bond front, yields on two-year bonds, which briefly rose above those of 10 years on Tuesday, raising fears of a sign of recession, stabilized at 2.36%. That of 10-year bonds stood at 2.40%, a very slight increase.
“The recent surge in Treasury yields”, which corresponds to a fall in the price of bonds from abandonment in favor of equities, “remains in the center of concern, as inversions of the yield curve are closely watched”, we warned. Schwab.
The US government released the latest estimate of US GDP growth in the 4th quarter, revised slightly down to 6.9% year on year.
“For the rest, we must expect slower growth in the 1st quarter, slowed down at the level of inventories and exports,” warned Rubeela Farroqi, economist for HFE.
“We see downside risks from geopolitical events and lockdowns in China,” she added.
On the positive side, the private sector in the United States added 455,000 jobs in March, slightly more than expected, and the February figure was revised up to 486,000.
The March unemployment rate will be released on Friday. It should continue to back up a bit. It is expected at 3.7% (-0.1 point).
Listed, yoga and sportswear maker Lululemon climbed 7.28% to $368, after quarterly profit beat expectations despite disappointing sales. But the company has announced good prospects for 2022 and a billion-dollar share buyback program.
The memory card specialist Micron Technology advanced 4.35% to 85.50 dollars, after exceeding expectations in terms of results as turnover.
Pet food seller Chewy plunged 13% to $44, after posting its third quarterly loss in a row. The group explains that it is facing “strong demand in a difficult environment” and mentions failed sales due to a lack of inventory.
© 2022 AFP
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