The New York Stock Exchange closed higher on Tuesday, relieved by falling oil prices, with investors looking for cheap buys after a red start to the week.
The Dow Jones took 0.30%, the Nasdaq index 1.45% and the broader S&P 500 index, 0.97%.
The American market was interested on Tuesday in values which had closed the day before lower, including giant capitalizations of the Nasdaq such as Apple (+1.84%), Amazon (+1.06%), Adobe (+1.83 %) or Tesla (+1.52%).
Semiconductor giants lead the way
The technology sector drove the market, helped in particular by the semiconductor giants who “led the dance”according to Peter Cardillo of Spartan Capital. Intel thus gained 4.20%, Nvidia gained 4.05% and Broadcom 3.23%.
In the wake of the very good report on American employment published last Friday, and after having exceeded the symbolic milestone of 4% at the close the day before (+4.02%), the yield on 10-year American government bonds s is established Tuesday at 4.01%. “The market is recovering from yesterday’s weakness and the fact that yields are high and the market is not under pressure is a good sign”argued Mr. Cardillo.
The tension in bond rates, however, raises concerns about a possible rise in inflation, according to specialists.
The good indicators on the state of health of the American economy have also reduced the chances of seeing the American central bank (Fed) continuing its monetary easing at the same pace this year, after a reduction of 0.5 percentage points in September, according to analysts. The New York market is therefore impatiently awaiting the publication on Thursday of the CPI consumer price index and the minutes of the Fed meeting on Wednesday.
Energy in the wake of oil
Wall Street also kept an eye on the sharp drop in black gold prices on Tuesday, after a week of continuous rise in the wake of rising tensions in the Middle East. “Oil prices have risen in anticipation of retaliatory action from Israel. So far this has not happened, so the market has decided to focus on demand”explained M Cardillo in reference to an attack by Tehran against Israel in early October.
The price of a barrel of Brent from the North Sea for delivery in December dropped 4.63%, to close at $77.18. A barrel of American West Texas Intermediate (WTI) maturing in November also returned 4.63%, to $73.57.
The energy sector, which had recently benefited from the rise in oil prices, followed their fall. ExxonMobil (-2.66%), Chevron (-1.57%), ConocoPhillips (-3.42%) and EOG Resources (-2.88%) all finished in the red.
Weighed down by the absence of new stimulus measures in China, Chinese stocks listed in New York marked the blow, including Alibaba (-6.67%), JD (-7.52%), PDD (-5.38 %), but also the Chinese electric vehicle manufacturer NIO (-8.10%).
The companies Las Vegas Sands (-2.79%) and Wynn Resorts (-3.32%), which own casinos in Macau (south China), closed lower for the same reasons.
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