Stock market: Wall Street ends in a mess, new fears about Fed

(Photo: Getty Images)

MARKET REVIEWS. The New York Stock Exchange ended in turmoil on Tuesday and was deprived of any real recovery after remarks by a Fed official that were deemed aggressive.

The Toronto Stock Exchange closed more than 100 points lower on Tuesday as crude oil prices fell again and major US indices closed in a messy fashion.

(re)consulting market news

Stock market indices at closing

in Toronto, S&P/TSX It closed at 19,890.06 points, down 109.63 points (-0.55%).

in New York, S&P500 It rose 9.81 points (+0.25%) to 4,001.05 points.

most Nasdaq It closed at 11,737.67 points, up 114.42 points (+0.98%).

most DOWN It fell 84.96 points (-0.26%) to 32,160.74 points.

most loon $0.0008 (-0.1090%) retraced to $0.7678.

most liquid oil It was down $3.39 (-3.29) to $99.70.

gold It fell $19.40 (-1.04%) to $1,839.20.

most bitcoin It fell $132.94 (-0.43%) to $31,091.39.

Context

After three sessions where traders struggled and suffered significant losses, indices looked poised to recover when trading began.

“The drop in 10-year yields (U.S. government bond yields) has been a catalyst for the market, with the fact that the market has seen a dramatic upswing,” said Quincy Krosby of LPL Financial.

The Nasdaq, which has been on a rubber band for weeks, climbed 2.76% at the start of the session, before lowering its sails significantly as the Dow Jones did, which ended in a fourth drop. line and the S&P 500.

In a note, Schwab analysts bounced back as Wall Street “faced a number of headwinds, including concerns about the Fed[the U.S. central bank]inflation and the possibility of an economic slowdown.”

Added to the context were statements by Loretta Mester, the head of the Fed’s Cleveland branch, who said she was open to a 0.75 percentage point hike in the key interest rate at the Fed’s upcoming meeting in case of a rise in prices. It did not decrease in the United States.

“It has helped turn the market,” said Marc Chandler, head of market strategy at Bannockburn Global Forex brokerage firm.

Loretta Mester’s comments also affected the bond market, which lost its regained strength in the morning. The yield on 10-year government bonds fell quite sharply to 2.93%, rising to 2.99%. Interest rates move in the opposite direction of bond prices.

Another reason for the fluctuation of the day is the lack of conviction of investors on the eve of the publication of the American inflation indicator CPI, which should inform about the burning issue of inflation.

“The market hopes to see confirmation that inflation has peaked and then slowed down,” Quincy Krosby warned, warning that “a point or two on a curve hasn’t changed direction” and will undoubtedly not have to wait for a while longer. before confirming this return.

On the other hand, in recent weeks the heavyweights of technology, Nvidia (+3.81%) Intel (INTC) (+2.18%), through Broadcom (AVGO) (+3.28%) or AMD (+2.74%) tried to revive the New York market.

to a lesser extent, Apple (AAPL) (+1.61), Microsoft (MSFT) (+1.86) and Alphabet (GOOG) (+1.33%) was also entitled to a respite.

Conversely, bank stocks were avoided as investors were more mindful of the impact of a possible economic slowdown on loan volume and quality than the restoration of higher-rated margins.

Bank of America (BAC) (-1.68) JPMorgan (JPM) (-2.44%) or Wells Fargo (WFC) (-2.00%) all withdrawn.

Another place, Team (PTON) It fell after the release of a lower-than-expected turnover and a larger-than-expected loss (-8.70% to $12.90 US). Even more worrying for investors, the company said it had “weakness” in equity capital, which has sparked fears for the sustainability of the specialist in its connected exercise bikes and treadmills.

Pfizer (PFE) ($1.75 to $49.49) after the announcement of the lab’s acquisition for US$11.6 billion Biohaven Pharmaceutica (BHVN) (+70.78% – $141.99) specializes in migraine treatment specifically.

Norwegian Ship (NCLH) The results, which were considered encouraging, were on the rise as bookings for the fourth quarter of 2022 were announced to be at the pre-pandemic level of 2019 ($1.63 to $16.21). The cruise line also covers an entire fleet for the first time in more than two years.

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