The Dow Jones lost 0.42%, the Nasdaq fell 1.89% and the broader S&P 500 index lost 1.11%.
The New York Stock Exchange ended sharply lower on Tuesday, strained by the rise in bond rates and the decline of certain giant capitalizations in the technology sector.
The Dow Jones lost 0.42%, the Nasdaq index lost 1.89% and the broader S&P 500 index lost 1.11%.
The market has been “very exuberant over the last two days (…) and has completely gone crazy,” observed Steve Sosnick, analyst at Interactive Brokers, to AFP.
The American market had difficulty digesting the publication of two indicators on Tuesday, including the ISM index which measures activity in services in the United States.
This index highlighted a rebound in activity in the services sector in December, at a more sustained pace than in November, higher than analysts’ expectations. Activity was driven in particular by the measures taken by companies to prepare for an increase in customs duties with Donald Trump.
However, the price-paid component of the index has “increased,” Sosnick said.
Another indicator: the number of job offers for the month of November also exceeded analysts’ consensus to stand at 8.1 million, according to the American Bureau of Statistics (BLS).
These elements reinforce investors’ feeling that the American central bank (Fed) will not intervene on its rates at the end of January.
Following these publications, “Treasury bond yields increased sharply,” noted Patrick O’Hare, analyst at Briefing.com, in a note, which may have upset investors.
On the bond market, the yield on 10-year US government bonds rose significantly to 4.69%, compared to 4.61% at Monday’s close.
“The losses recorded by certain mega-caps limited the performance” of the indices, reported Mr. O’Hare.
Semiconductor giant Nvidia tumbled 6.22%, while Apple lost 1.14%. Microsoft (-1.28%), Alphabet (-0.63%) and Amazon (-2.42%) also fell.
Tesla slipped (-4.06%) after the American Highway Safety Agency (NHTSA) announced on Tuesday that it had opened an investigation into 2.6 million vehicles of the group in the United States following several accidents involving involved a feature allowing users to move their car remotely.
NHTSA has documented four accidents where Tesla vehicles failed to detect and avoid poles or parked vehicles.
At the same time, the rating of the electric vehicle manufacturer was downgraded by the Bank of America.
Meta (Facebook, Instagram, WhatsApp) was sanctioned (-1.95%) after its founder and boss Mark Zuckerberg announced on Tuesday that he was ending his fact-checking program in the United States, a major setback in his policy of content moderation.
“We will get rid of fact-checkers and replace them with community ratings, similar to X, starting with the United States,” Mr. Zuckerberg said in a message on social media.
For its part, vaccine manufacturer Moderna gained speed (+11.65%) in a context of concerns about avian flu in the United States.
A first human death linked to avian flu has indeed been recorded in the country, Louisiana health authorities announced on Monday, specifying that it was an elderly patient suffering from other pathologies.
The Getty Images agency (+24.12%) and the Shutterstock image bank (+14.81%) were propelled after the announcement of their merger to create a giant in the visual content sector.
