(New York) The New York Stock Exchange was stabilizing in mixed order on Thursday, after a sharp decline at the start, on concerns about persistent inflation in the United States and the Fed’s tightening of monetary conditions.

Around 11 a.m., the Dow Jones lost 0.21%, the NASDAQ gained 0.97% after going deep into the red on the open, the S

On Wednesday, the Dow Jones index fell 1.02% to 31,834.11 points and the broader S

The tech-heavy NASDAQ plunged 3.18% to 11,364.23 points.

Over the week, the Dow Jones is down 3.5%, the S

And since the start of the year, the three indices have fallen by 12%, 17% and 27% respectively.

Investors took notice ahead of the US Producer Price Index (PPI) open for April, which shows wholesale prices slowed a little, to 0.5% on the month, but are still up 11% over one year.

The figure follows that of Wednesday’s consumer price index (CPI) which came in at 8.3% year on year, slowing down a bit but remaining stubbornly close to its highest level in 40 years.

“This data will encourage the Fed to raise rates quickly,” concluded Rubeeela Farooqi, chief economist for HFE.

Wall Street has accelerated its downward slide since the last half-percentage-point rate hike by the U.S. central bank on May 4.

“The stock market is besieged this year by a host of significant issues,” Patrick O’Hare of Briefing.com explained in a note.

He cites “rising interest rates, the Fed’s change of course, Russia’s invasion of Ukraine, continued high inflation, supply chain bottlenecks [ …] and China’s zero-tolerance policy against COVID-19.”

To this was added Thursday the collapse of cryptocurrencies which still led to mistrust of the digital sector.

Very volatile, bitcoin stabilized at $29,000 after sinking to $25,424 overnight from Wednesday to Thursday. The cryptocurrency star is down 30% month on month and at levels not seen since December 2020.

The Coinbase trading platform, which saw its stock plunge 26.4% on Wednesday, to its lowest level since its IPO a year earlier, recovered a little (4.90%) to 56 dollars.

Brokerage app Robinhood, which recently offered a bitcoin-linked fund, plunged 12% before climbing back 7% to $8.72 from $38 when it went public less than a year ago .

Viral and highly volatile GameStop stock, favored by online brokers, was in high demand climbing more than 30% before being suspended from trading multiple times on NASDAQ Thursday morning. Around 11 a.m., the title of the video game distributor gained 22% to 99 dollars.

GameStop is best remembered for shaking up Wall Street and big investment funds in early 2021 by becoming the darling of online investors, along with other stocks like movie theater chain AMC (up 18% at $12).

These “viral” stocks (known as “meme stocks”) were once again generating excitement in online forums of amateur shareholders.

A safe haven, the dollar climbed to a 20-year high against other major currencies.

“The dollar hit multi-year highs as US inflation persists at elevated levels, keeping the Federal Reserve on track for steep interest rate increases,” said Western Union analyst Joe Manimbo.

“It is obvious that the rate hikes of the Fed will far exceed those of Europe, a scenario which makes the greenback more attractive than the euro”, further underlined the analyst.

The euro slipped 1% against the dollar to 1.0405 dollars for one euro, approaching parity a little more.

Among the latest company results for the season, Disney was penalized (-0.68% to 104 dollars) after the entertainment giant on Wednesday published a quarterly profit almost halved. However, the group has seen an increase in subscribers to its Disney streaming platform.

https://www.lapresse.ca/affaires/marches/2022-05-12/wall-street-remonte-apres-un-debut-en-baisse.php

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