Operators on the New York Stock Exchange on August 15, 2025 (AFP / Timothy A.Clary)
The New York Stock Exchange ended downward oriented on Wednesday, pending the Central Banker School in Jackson Hole, investors continuing to abandon technological values.
The Dow Jones finished close to balance (+0.04%), the NASDAQ index, with a high technological coloring, fell 0.67%and the enlargement 500 index dropped 0.24%.
“The feeling of risk aversion has today dominated Wall Street, the + seven magnificent + (nickname given to the giants of the technological sector, editor’s note) resulting in the downward stocks,” notes Jose Torres, of Interactive Brokers.
Alphabet (-1.12%), Amazon (-1.84%), Apple (-1.97%), Meta (-0.50%), Microsoft (-0.79%), Nvidia (-0.14%) and Tesla (-1.64%) all seven finished in the red.
“We just got to a point where many of them were over -going,” says AFP Tim Urbanowicz, in Innovator Capital Management.
One of the trigger elements was the publication at the start of the week of a Massachusetts Institute of Technology (MIT) report having put profitability for investment companies in AI.
Given the “valuation level” of these companies, it is necessary to remain “prudent” by avoiding “letting an excess of confidence” for these values, warns Tim Urbanowicz.
In parallel, “investors wonder if the president (from the federal reserve, editor’s note) Jerome Powell will support the idea of an accommodating policy on Friday during his speech to the annual Jackson Hole symposium,” said Jose Torres.
The vast majority of operators expect a rate drop at the end of the next Fed meeting on September 16 and 17, according to the CME monitoring tool, Fedwatch.
It is “very surprising that the market displays such a degree of confidence” while inflation in the United States remains high and greater than the mandate of the Fed, comments Tim Urbanowicz.
According to him, it is “largely” to the many pressures of US President Donald Trump “to encourage the Fed to lower its rates”.
The main officials of the American central bank, have expressed their divergent opinions on the monetary policy to be carried out, according to a report of their discussion at the end of July published on Wednesday.
Several of them expressed their concern in the face of the growing risks on the job market. In general, all members are cautious for the future, saying that they are ready to “adjust the economic position if risks appear to thwart the objectives” of the Fed.
On the bond market, the return on American state loans at ten years slightly relaxed at 4.29% against 4.31% at the end on Tuesday.
Elsewhere, at the coast, the semiconductor sector suffered from press information ensuring that the United States government would think of transforming the subsidies granted within the framework of the “Chips Act” plan for participation. Intel lost 6.99%, TSMC 1.76%and Micron 3.97%.
The Target supermarket chain has slipped (-6.33% to 98.69 dollars). The group has exceeded Wall Street’s expectations in terms of turnover but expects its annual sales to fall.
The Minneapolis company (Minnesota) also announced a change at its head, the current boss Brian Cornell to be replaced from February 1 by Michael Fiddelke.
The Holding of low-cost stores TJX (+2.71% at 138.27 dollars), which notably controls the Tjmaxx (clothing), Homegoods (decoration items) and Marshalls (ready-to-wear) brands, was sought after having done better than designed for the second quarter and having revised its annual upward forecasts.
Nasdaq