Wall Street opens lower, exhausted after records

Wall Street opens lower, exhausted after records
Wall Street opens lower, exhausted after records

Around 3:50 p.m., the Dow Jones dropped 0.48%, the Nasdaq fell 0.08% and the broader S&P 500 index dropped 0.24%.

The New York Stock Exchange opened lower on Friday, carrying out a consolidation movement after a series of records, while waiting to learn more about the trajectory of the American economy.

Around 1:50 p.m. GMT, the Dow Jones lost 0.48%, the Nasdaq index returned 0.08% and the broader S&P 500 index lost 0.24%. Nasdaq and S&P 500 have just set four closing records this week.

“The market has been going at full speed” in recent days, underlines Quincy Krosby of LPL Financial, for whom the time has come for an ebb. In addition, “it is only driven by a handful of values”, almost all of which come from the technological sector, boosted by the fever of generative artificial intelligence (AI).

The New York market thus honored Friday the creative and professional software publisher Adobe (+14.88%), which published results above expectations, supported in particular by the integration of generative AI into its products.

The San Jose (California) group has raised its annual targets.

At the end of a successful week, the likes of which it had not experienced in years, thanks to the presentation on Monday of its new generative AI system, Apple also remained with its head above water (+0, 02%). It consolidated its position as the world’s largest capitalization, recovered on Wednesday at the expense of Microsoft.

Another big name in the AI ​​universe, the semiconductor designer Broadcom (+2.02%), whose results, published on Wednesday, were impressive, was also one of the few stocks in the green at the start of the session.

But for the rest, investors were rather sellers, without rushing.

For Patrick O’Hare of Briefing.com, “the bout of weakness in European markets gave (American investors) an excuse to sell.”

As is often the case this week, old economy stocks were the most affected, notably financials such as Goldman Sachs (-1.06%) and JPMorgan Chase (-0.63%). A lower interest rate environment eats into bank margins.

Under the effect of the publication of two inflation indicators lower than expected, the CPI consumer price index and its equivalent for wholesale prices, the PPI, on Wednesday and Thursday, bond yields remained under pressure.

The rate on 10-year US government bonds recorded a new low of two and a half months, at 4.18%, compared to 4.24% the day before at closing.

Operators also saw signs of a deceleration in the job market with the jump in new unemployment claims on Thursday.

“The market is at a crossroads,” says Quincy Krosby. “He wonders if bond yields are falling because inflation is slowing or because the economy is slowing down too hard? He is waiting to clarify this.”

On the stock market, Tesla remained on the rise (+0.34%), the day after the validation, in the general meeting, of the massive remuneration plan for its general director and reference shareholder, Elon Musk, valued at just under 50 billion dollars.

Boeing was unable to halt its decline (-0.95%), after reporting on Thursday that fasteners were not sufficiently tightened on elements of 787 Dreamliners awaiting delivery.

The setbacks follow one another for the aircraft manufacturer, whose stock has lost more than 31% since the start of the year.

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