Wall Street down to close Donald Trump’s first week

(Washington) The New York Stock Exchange finished in the red on Friday, weighted with a few profits after a week agitated by the return of Donald Trump to the White House, his gaze now turned to the meeting of the American Central Bank ( Fed) next week.

The Dow Jones fell by -0.32 %, the Nasdaq index dropped -0.50 %and the enlarged index S&P 500 lost -0.29 %.

After two weeks of upward dynamics, “this is not a change of trend”, assesses with AFP Sam Stovall, of CFRA.

According to him, “it is simply a session where the investors decided to take advantage”, galvanized by the record reached the day before by the S&P 500.

Thursday, the enlarged index closed at 6118.71 points, its highest historic, and had also established during the day a new record in session.

Since Monday, Donald Trump’s inauguration day, “investors are trying to integrate many decisions and announcements from the new president,” said Stovall.

The American president said, for example, on Thursday evening that he would prefer not to impose customs duties in Beijing, a turnaround after his repeated promises to strike the largest economic rival in the United States with heavy import taxes.

Before his election, Donald Trump was determined to impose new customs duties on all imported products, to preserve the American productive apparatus. He did not rule out the possibility that they reach 60 %, or even more, for Chinese products.

This turnaround “reminded investors that there was therefore still a room for maneuver for customs duties”, which constitute “more likely a negotiation scheme than a fait accompli”, underlines Sam Stovall.

The market also has the look to the next Fed meeting, scheduled for next Tuesday and Wednesday, which should be concluded with a maintenance of the rates at their current level.

Donald Trump “demanded” on Thursday that “interest rates drop immediately” during an online speech in front of an audience of bosses at the World Economic Forum in Davos, Switzerland.

“Trump cannot order the interest rates to drop, he can put pressure on the Fed, but that will have no effect on the return on bonds at 10 years,” said Sam Stovall.

The market “is more concerned with what the Fed will say that by what it will do” at its next meeting, sums up AFP Sarhan, of 50 Park Investment.

On the table of values, the aeronautical manufacturer Boeing fell (-1.37 %) after warning the day before a heavy loss in the fourth quarter, in particular because of the strike of more than fifty days led by nearly 33,000 workers Near Seattle.

The aircraft manufacturer, which must present all of its financial results on January 28 before the opening of the New York Stock Exchange, provides for a quarterly turnover of $ 15.2 billion and a net loss by action $ 5.46.

Danish pharmaceutical giant Novo Nordisk, known for its Ozempic and Wegovy products, flew to Wall Street (+8.47 %).

The group, known for its treatments for diabetes and weight loss, took advantage of encouraging results on a new molecule against overweight, Amycretine.

The Texas Instruments electronic component specialist has plummeted (-13.07 %), weighed down by forecasts deemed disappointing.

Meta – The parent company of Facebook and Instagram – climbed 3.24 % after the group’s boss, Mark Zuckerberg, announced that he planned to invest up to $ 65 billion in projects related to Artificial intelligence in 2025.