After a session overall in the green, the Dow Jones finished decreasing by 0.38% and the enlarged index S&P 500 flexes 0.12%. Only the Nasdaq manages to end in small increase (+0.15%).
The New York Stock Exchange marked the step on Wednesday, weighed down by measured remarks of the president of the federal reserve (Fed) Jerome Powell, who retreats the anticipations of a rate drop at the next meeting of the institution in September.
After a session overall in the green, the Dow Jones finished decreasing 0.38% and the enlarged S&P 500 index lost 0.12%. Only the NASDAQ index managed to end in small increase (+0.15%).
“M. Powell was firmer than what the markets hoped for, “AFP Angelo Kourkafas, Edward Jones analyst, summed up with AFP.
According to the boss of the American Central Bank (Fed), there are “many, many uncertainties to lift” concerning the repercussions of the volley of new customs rights imposed on products entering the United States by the Trump government.
Regarding trade negotiations, “we are still far from where things will succeed”, despite a “very dynamic period”, judged Mr. Powell, who was expressed after the meeting of the monetary policy committee (FOMC) from there the Fed.
The institution undoubtedly left its interest rates unchanged on Wednesday, at the level which has been theirs since December, between 4.25% and 4.50%.
“The market did not receive the clues that a drop in September was very likely,” explains its reaction to the decline, according to Kourkafas.
While a majority of analysts anticipated a drop in rates at the next FOMC meeting in September, they are now more circumspect, according to the CME monitoring tool.
Out of twelve members of the FOMC, two voted against the maintenance of the rates. Such opposition had not been seen for over 30 years.
“But the majority of the committee always comes back to the wait -and -see approach to which we are now used to it,” noted Mr. Koukafas.
On the bond market, the yield of the American loan at two years, the deadline most sensitive to monetary policy changes, fell 3.87% against 3.93% at the end on Tuesday.
The ten -year deadline stretched 4.37%, compared to 4.32%.
At the start of the session, Wall Street was enthusiastic about the publication of data showing an American economy in better shape than expected.
Economic activity increased by 3% in the second quarter in the United States in annualized pace where marketwatch analysts were tabling on 2.3% increase in gross domestic product (GDP).
A marked difference while GDP was contracted by 0.5% in the first quarter, in annualized rhythm, due to a rush to imports to delay the effect of customs duties put in place by Donald Trump as much as possible, invested for a second term in January.
Also published Wednesday, the monthly report of the Adp and Stanford Lab’s office reported 104,000 positions created in July in the private sector in the United States, more than the 76,000 expected by analysts.
At the coast, the vehicle rental company Avis (-15.41% to 172.46 dollars suffered from results significantly lower than the expectations for the second quarter, in particular a net profit per share of 10 cents, while analysts anticipated him around $ 2.
The novo Nordisk pharmaceutical giant (-7.25% to 50.03 dollars) continued its dive, the day after the second declining revision of its results forecasts, weighed down by bad sales in the United States of its star treatments against obesity and diabetes, Wegovy and Ozempic.
Motorcycle manufacturer Harley Davidson (+13.38% at 26.02 dollars) surfed on the announcement of a partnership between his financial branch and the KKR and Pimco investment funds.
The agrifood group Mondelez International (Biscuits Lu and Oreo, Chocolates Milka and Côte d’Or) lost 6.61% to $ 65.10, despite a turnover in clear progression in the second quarter, supported by the price increases applied to its chocolate products.
After Wall Street’s fence, Meta’s action jumped more than 10% during electronic exchanges.
The group (Facebook, Instagram …) has largely exceeded expectations in the second quarter, with $ 47.5 billion in turnover, up 22% over one year, whose group has released $ 18.34 billion in net profit (+36%), thanks in particular to the increase in advertising prices
