(New York) The New York Stock Exchange fell again on Wednesday, uneasy with a higher-than-expected inflation gauge, which opens the door to further tightening of US monetary policy.
The Dow Jones dropped 1.02% and the Broader Index S
Since its peak at the end of November, the barometer of technology stocks has melted by almost 30%.
The entire session will have been marked by the publication, before the opening of Wall Street, of the CPI consumer price index, which came out at 8.3% in April, down from 8.5% in March but more than the 8.1% expected by economists.
During the first half of the day, the indices went on a roller coaster, marking the opposition of two visions of the indicator.
On the one hand, a positive reading. Cliff Hodge of Cornerstone Wealth concluding that “March will have been a peak” for inflation, which has started “a slight deceleration”.
“Recession fears are exaggerated,” continued the analyst, for whom “the consumer remains solid and continues to spend”.
The other part of the operators saw in this publication an alarming signal.
“Underlying inflation (excluding energy and food) has reached its fastest pace since January,” responded Charlie Ripley of Allianz Investment Management, who said it “makes the job” of the US central bank (Fed ) “more delicate”.
“This persistent inflation will push the Fed to (raise rates) more aggressively,” said Will Compernolle of FHN Financial.
“It might even get some (members of the Fed) to argue for a 0.75 percentage point hike in June,” he said, a prospect that was dismissed by Fed Chairman Jerome Powell. last week.
“The longer inflation lasts, the longer you are willing to endure to bring it down,” commented Keith Buchanan of Globalt. “That’s what’s causing this market reaction. »
Another illustration of a turbulent New York market, the bond market was shaken by brutal movements throughout the session.
The yield on 10-year US government bonds thus took off from 2.90% to 3.07%, before easing almost to its level at the start of the day, at 2.92%.
The tech heavyweights had one of their worst days of the year, with Apple losing 5.18%, Microsoft 3.32%, Tesla 8.25% and Meta (ex-Facebook) 4.51%.
In one week, Tesla saw its capitalization melt by almost 23%.
As for the Dow Jones, it managed to limit its losses thanks to so-called defensive stocks, in particular the industrial sector, such as Caterpillar (1.09%), Chevron (1.48%), Merck (1.57% ) or Dow (1.49%).
Elsewhere on the coast, the Coinbase cryptocurrency exchange platform tumbled (-26.44% to 53.72 dollars), after the publication, Tuesday after the market, of results below expectations.
In tune with the cryptocurrency rout, the group saw monthly user numbers and transaction volumes fall from the fourth quarter.
The entire sector was caught up in the turmoil, from stock exchange Robinhood (-12.08%) to indexed ProShares Bitcoin Strategy ETF (-6.48%).
Launched with fanfare last October, the first investment product of its kind in the United States has since lost more than half of its value.
Beyond that, new economy financial companies, such as payment specialist Block (ex-Square, -15.61%) or online credit payment company Affirm (-19.57%), also suffered.
Electronic Arts rose sharply (-7.97% to 120.49 dollars) despite the announcement of the end of its historic partnership with FIFA on the game of the same name, as well as quarterly results below expectations.