The floor of the New York Stock Exchange (GETTY IMAGES NORTH AMERICA / SPENCER PLATT)
The New York Stock Exchange ended in disarray on Thursday, with Nasdaq and S&P 500 hitting, in one breath, a new closing record, despite a consolidation movement which stifled the market.
Nasdaq and S&P 500 gained 0.34% and 0.23% respectively, while the Dow Jones fell slightly (-0.17%).
The session was volatile, with Nasdaq and S&P 500 going back and forth in the red, with the major indices struggling to find direction.
“The market was nevertheless treated to news which could encourage the Fed (American central bank) to lower its rates,” noted Patrick O’Hare, of Briefing.com.
The producer price index (PPI) contracted by 0.2% in May, while economists saw it increasing by 0.1%.
The figure confirmed the good impression left the day before by the CPI consumer price index, stable in May.
“Just when everyone expected it, disinflation is in the pipeline,” commented Jamie Cox of Harris Financial Group. “If this is confirmed, the hypothesis of a rate cut in September will be on the table.”
The central hypothesis of operators includes two cuts from the Fed this year, even though the forecasts of the members of the institution, updated on Wednesday, only see one.
The ground appears all the more conducive to monetary easing as the job market shows signs of cooling.
New jobless claims rose to 242,000 last week, their highest level in ten months.
The two indicators of the day caused bond rates to waver, already under pressure on Wednesday after the publication of the CPI index.
The yield on 10-year US government bonds fell to 4.22%, a first since the beginning of April.
“We can add to all this Broadcom (+12.27%) and the enthusiasm linked to its results and the announcement of the division of its shares by ten”, described Patrick O’Hare.
The semiconductor designer published results above expectations and raised its forecasts for its entire delayed financial year (closed at the end of October). Revenues from artificial intelligence now reach a quarter of turnover.
“The market had everything to sign a nice increase today”, estimated Patrick O’Hare. Instead, “he didn’t do much,” notes the analyst. “People decided it was better to consolidate some of the strong gains they’ve had in recent times.”
On the stock market, the flash Broadcom made several stocks in the technology sector shine, notably its competitors Qualcomm (+1.12%), Nvidia (+3.52%) and Micron (+1.70%), as well as the specialist in Super Micro Computer servers (+12.44%).
Apple (+0.55%) has regained the title of largest global capitalization, ahead of Microsoft (+0.12%), but Nvidia is getting closer and closer and is now less than 100 billion valuation from the peak.
Tesla soared (+2.92%) after Elon Musk affirmed, on electric vehicles in Texas, were on their way to being approved by a majority of shareholders.
In a context favorable to growth stocks, in particular the Amgen laboratory (-0.86%), American Express (-0.83%) or Boeing (-1.08%).
The latter revealed that it had detected incorrectly tightened fasteners on 787 Dreamliners awaiting delivery.
The media group Paramount Global continued its decline (-6.92%), after its controlling shareholder National Amusements broke off negotiations with the studio Skydance Media, with a view to a possible union.
In the same sector, Warner Bros Discovery (-6.66%) fell to its lowest level in 15 years, as investors question its growth prospects as well as the possible loss of the league’s broadcast rights professional NBA basketball player.
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