The New York Stock Exchange was trading in mixed order on Wednesday, with technology in the green as investors wonder about the trajectory of rates after comments from members of the Federal Reserve (Fed), while awaiting the publication of new American indicators.
The Dow Jones index lost 0.38%, the Nasdaq, with its strong technological coloring, gained 0.34% and the S&P 500 stagnated (-0.03%) around 2:10 p.m. GMT.
The day before, Wall Street had closed without direction, the rebound of Nvidia (+6.76%) – the darling stock of the market and the AI sector – having been “to the detriment of the entire market”, commented Patrick O’hare of Briefing.com.
The Dow Jones index lost 0.76% to 39,112.16 points, the Nasdaq advanced 1.26% to 17,717.65 points and the S&P 500 gained 0.39% to 5,469.30 points.
As we approach the end of the first half, several governors and regional presidents of the Fed have outlined their scenarios for the rest of the year regarding the evolution of inflation and unemployment as well as the monetary response possible.
The hypotheses range from “an orderly decline in inflation allowing the Fed to slowly abandon its restrictive policy to a pronounced slowdown (via) inflation and growth that remain strong, meaning high rates for longer, or even further increases,” summarized Art Hogan of B. Riley Wealth Management.
Fed Governor Michelle Bowman declared that she remained “willing to increase” borrowing costs again “if progress on inflation stops or even reverses.”
On the bond market, ten-year rates accelerated to 4.30% instead of 4.24% the day before.
Investors await Thursday’s final estimate of third-quarter growth, durable goods orders and jobless claims, a weekly barometer of the health of the labor market. But above all, it is the PCE inflation index for May, the Fed’s preferred measure for judging price developments, which will attract attention on Friday.
Analysts expect inflation to have slowed year-on-year to 2.6% from 2.7% in April.
On the market, the star of the session promised to be the action of Rivian, which got off to a flying start with an increase of 31%, to almost 16 dollars, the highest since February.
The stock was in demand after Volkswagen announced a giant $5 billion investment on Tuesday to create a joint venture specializing in automotive software with the US electric vehicle maker.
The company “will invest an initial amount of $1 billion in Rivian, before an additional investment of $4 billion, for a total amount of 5 billion euros,” Volkswagen said in a statement.
In the process, Tesla gained 2.72% and Lucid +6.80%.
FedEx soared more than 12% after the express carrier announced better-than-expected quarterly and annual results along with a structural savings plan that pleased investors.
Household appliance maker Whirlpool also jumped by more than 12%, with press reports indicating that German firm Bosch is considering a takeover bid for the American.
The fast-food chain Chipotle Mexican Grill lost 1.60% trading for the first time after its 50 split, one of the largest stock splits in Wall Street history, intended to make the title, which reached some 2,900 dollars, more affordable.
The food giant General Mills fell by 5.31% and announced quarterly sales down year-on-year.
Nasdaq
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