Wall Street closed in dispersed order on Wednesday, the fragile truce between Israel and Iran continuing to hold, while investors scanned a second day of testimony to the president of the Federal Reserve, Jerome Powell, before the Congress.
The technological values allowed the NASDAQ to progress slightly, while the S&P 500 retreated marginally, however remaining within reach of its closing record reached on February 19.
The Dow Jones index, made up of flagship values, ended in negative territory.
“We are less than 1 % of a new historic summit,” said Sam Stovall, chief strategist at CFRA Research in New York. “And the new records act as rusty doors, which require several attempts before finally opening. »»
Among the 11 main sectors of the S&P 500, only communication services, technology and energy were up on the session. Defensive values such as real estate and communities have underperformed the entire market.
The fragile truce between Israel and Iran maintained itself, US President Donald Trump claiming victory despite the lack of clarity on the extent of the damage caused by American strikes on Iranian uranium enrichment facilities.
Jerome Powell, during his second consecutive day of testimony to congress, reaffirmed before the Senate banking commission that the central bank was well positioned to wait before lowering interest rates, until the inflationary effects of the vast customs duties imposed by Trump are better known.
“(Investors) listen to the lookout for small sentences that could make Trump react,” added Stovall. “Because the president wants to lower the rates and the Fed responds no, we will be guided by the data. »»
“Investors will watch for the slightest Powell index suggesting that the Fed may not wait until September to lower its rates,” said Stovall.
The financial markets assess almost 25 % the probability of a drop in rates at the July meeting, and at 67 % the probability that the first decline occurs in September, according to the Fedwatch tool of the CME.
Real estate figures published on Wednesday showed a collapse of 13.7 % of new housing sales and a drop in real estate loan requests, while mortgage rates were increasing.
On Thursday, the Commerce Department must publish its final estimate of the GDP of the first quarter, and Friday, the report on personal consumer expenses (PCE) will provide indications on household consumption and inflation.
The Dow Jones Industrial Average lost 168.40 points, or 0.39 %, at 42,920.62 points; The S&P 500 sold 3.70 points, or 0.06 %, to 6,088.48 points; While the Nasdaq Composite won 29.93 points, or 0.15 %, at 19,942.46 points.
Tesla shares dropped 4.4 % after a fifth consecutive month of drop in its European sales.
Economic uncertainty continues to weigh on business forecasts.
Fedex titles fell 4.0 % after the package delivery group announced a quarterly profit below expectations, customs duties weighing on global demand. Its competitor UPS dropped 1.6 %.
General Mills has published disappointing profits, resulting in a 4.6 % drop in its action.
The shares of the BlackBerry Cybersecurity Company, listed in the United States, jumped 14.0 % after an upward revision of its turnover forecasts, carried by a sustained demand.
Micron sold 0.9 % before the publication of its quarterly results after the fence.
On the New York Stock Exchange, the declining values exceeded the increases in a report of 2.09 per 1. There were 139 new highest and 55 new on the NYSE.
On the Nasdaq, 1,501 titles were increasing and 2,852 down, a ratio of 1.9 per 1 in favor of withdrawal values.
The S&P 500 recorded 22 new highests over 52 weeks and 7 new lowers, while the Nasdaq Composite posted 79 new highest and 56 new lower.
