Wall Street ends in disorganized order

(New York) The New York Stock Exchange ended in disarray on Monday, under the influence of investors who are reshuffling the cards, taking profits on artificial intelligence (AI) stocks and looking for good deals.

The Dow Jones rose 0.67%, the NASDAQ index lost 1.09% and the broader S&P 500 index lost 0.31%.

« Some of the AI ​​hype headlines [intelligence artificielle] are falling, but what is encouraging is that the market as a whole is holding up,” commented Patrick O’Hare of Briefing.com.

Locomotive of generative AI with its chips adapted to the requirements of this new technology, Nvidia (-6.68%) is the symbol of the wave of profit taking which is crossing the sector.

The Santa Clara (California) group has fallen by almost 13% in three sessions and lost nearly $400 billion in market capitalization since its historic peak, less than a week ago.

Some of its competitors were also targeted, in particular Qualcomm (-5.50%) and Broadcom (-3.70%), or even Intel (-1.67%).

But at the same time, the Dow Jones and especially the broader indices, such as the S&P 500 with equal weighting (each stock weighs the same in the index) and the Russell 2000, all finished in the green.

Financial stocks, such as Goldman Sachs (+2.65%) and JPMorgan Chase (+1.31%), were sought after, as were oil companies like Chevron (+2.60%) or ExxonMobil (+2.97%). %), which have suffered in recent months.

The health sector was also in the spotlight, led by the health insurer UnitedHealth (+1.53%), by far the first weighting of the Dow Jones (8%), or the Merck laboratories (+1.71 %) and AbbVie (+1.38%).

“Some of this activity is linked to the approach to the end of the month, but there is also a natural rotation given the performance of AI stocks and the technology sector in general,” explained Patrick O’Hare . “This is normal consolidation. »

This phase of redistribution is also accentuated by the prospect of the update, on Friday, of the Russell 1000, 2000 and 3000 indices, which will see dozens of companies exit or enter their composition. Referencing in these indices benefits the companies concerned and those which are excluded may be penalized vis-à-vis investors.

This reallocation movement also affects bonds, as signs of a lull on the inflation front accumulate.

The yield on 10-year US government bonds eased slightly, to 4.24% compared to 4.25% at Friday’s close.

For Patrick O’Hare, US Treasury bonds are also appreciating on the basis of a flight towards assets deemed safe, as the first round of the legislative election in France approaches.

The game of musical chairs is also encouraged by the update, on Friday, of the Russell 1000, 2000 and 3000 indices, which will exclude, then integrate, dozens of securities into their basket of values.

While the market is still more than two weeks away from the start of earnings season, a few releases are expected this week, including FedEx on Tuesday, General Mills on Wednesday, and Nike on Thursday.

On the stock market, Meta increased (+0.83%), the day after the publication of information from the Wall Street Journal, according to which the Menlo Park (California) group discussed with Apple (+0.31%) the possibility of giving it access to its own generative AI system to equip its devices.

Donald Trump’s media group, Trump Media and Technology Group, continued its ups and downs.

After having stumbled by more than 30% in ten days, due to the upcoming introduction of millions of new shares, the stock jumped 21.19%, Monday, as the first presidential debate approaches on Thursday between the former head of state and Joe Biden.

Bitcoin continued its slide, to its lowest level in almost two months, and took with it the cryptocurrency exchange platform Coinbase (-6.00%).