New York (AFP) – The New York Stock Exchange opened modestly higher on Wednesday, with the Nasdaq and S&P 500 indices slowly hitting their highs for the year.
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The Dow Jones index nibbling 0.10%, the tech-dominated Nasdaq gleaned 0.07% as did the broader S&P 500 index.
The day before, the indices had progressed very slightly: the index of star stocks had gleaned 0.03% to 33,573.28 points, the Nasdaq had advanced by 0.36% to 13,276.42 points and the S&P 500 by 0.24 % at 4,283.85 points.
“This is another morning where the exchanges are hesitant”, noted Patrick O’Hare of Briefing.com. “Part of the reason for the market’s restraint is the belief that mega-cap stocks are likely to pull back and will exert overwhelming pressure on major indices,” the analyst added.
Half an hour after the opening of the market, the central bank of Canada raised its key rate by 0.25 points, which slightly slowed the positive evolution of the New York indices while investors await the monetary meeting of the Fed next week.
The Bank of Canada thus reversed its decision to pause the rate hike. Bond yields reacted immediately, with the ten-year rate on Treasury bills trending around 2:30 p.m. GMT to 3.74% from 3.66% the previous day.
Among the indicators of the day, the American trade deficit widened to its highest level in six months due to a marked drop in exports (-5.3%), which could weigh on growth in the United States. in the second trimester.
In addition, the OECD raised its global growth forecast to 2.7% for 2023 but warned that the road would be “long” for sustainable growth.
Other news that tempered traders’ enthusiasm: China’s exports, historically a key growth lever for the country, fell back into the red in May and imports are still struggling.
On the stock exchange, after a difficult day, which had seen the title fall by 12.09%, the Coinbase cryptocurrency trading platform recovered, rising by more than 3%.
Targeted by a lawsuit from the American market policeman, the SEC, which accuses it of not having registered with it, the platform benefited from the announcement of the investment company ARK, which acquired 400,000 shares Coinbase.
The agri-food group Campbell Soup, made famous by Andy Warhol, fell by 5.84% despite results that exceeded expectations and the confirmation of its annual forecasts. However, its margins have eroded.
Tesla advanced by 3.87%, the day after an appeal decision rendered by a Delaware court, which again rejected the request of shareholders of the manufacturer denouncing the conditions of the takeover of the manufacturer of solar panels SolarCity.
The regional bank PacWest, once considered the new weak link in the American banking system, took 5.88%. Since its low in early May, its share price has more than tripled (+337%). Other regional banks were in the green like Western Alliance Bancorporation (+1.88%) and Zions (+1%).
© 2023 AFP