(Photo: Getty Images)
MARKET REVIEW. 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.
The main Canadian stock index fell 1.2% on Thursday, weighed down by losses in the energy, financial and base metals sectors, while American markets were mixed.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX fell by -263.44 points (-1.20%) to 21,698.11 points.
In New York, the S&P 500 showed an increase of +12.71 points (+0.23%) to 5,433.74 points.
THE Nasdaq collected +111.25 points (+0.57%) to 17,607.75 points.
THE DOW decreased by -65.11 points (-0.17%) to 38,647.10 points.
THE loon fell by -US$0.0010 (-0.1414%) to US$0.7271.
THE oil lost -US$0.57 (-0.73%) to US$77.93.
Gold fell -US$35.10 (-1.49%) to US$2,319.70.
THE bitcoin fell -US$1,503.20 (-2.21%) to US$66,731.78.
Context
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 entitled 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 pipes,” 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 (AVGO, +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,” said Patrick O’Hare. Instead, “it didn’t do much,” notes the analyst. “People decided that “it was better to consolidate part of the marked gains recorded recently.”
On the stock market, the flash Broadcom made several stocks in the technology sector shine, notably its competitors Qualcomm (QCOM, +1.12%), Nvidia (NVDA, +3.52%) And Micron (MU, +1.70%)as well as the server specialist Super Micro Computer (SMCI, +12.44%).
Apple (AAPL, +0.55%) regained the title of largest global capitalization, ahead of Microsoft (MSFT, +0.12%)but Nvidia is getting closer and closer and is now within 100 billion valuation of the peak.
Tesla (TSLA) flew (TSLA, +2.92%) after Elon Musk affirmed, on approved by a majority of shareholders.
In a favorable context for growth stocks, notably the laboratory Amgen (AMGN, -0.86%), American Express (AXP, -0.83%) Or Boeing (BA, -1.08%).
The latter revealed that it had detected incorrectly tightened fasteners on 787 Dreamliners awaiting delivery.
The media group Paramount Global (PARA) continued its decline (PARA, -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 (WBD, -6.66%) fell to its lowest level in 15 years, as investors question its growth prospects as well as the possible loss of broadcast rights to the professional basketball league NBA.
Subscribe to our thematic newsletter:
Personal Finance — Every Friday
Get inspired by the advice of our financial planning experts and all the news that may affect the management of your wealth.
