The New York Stock Exchange is still trading thinly three hours before the close, with investors looking cautious ahead of the start of the season and the release of key U.S. inflation data on Wednesday. New health restrictions in China, with the spread of COVID-19, are also weighing on, with new concerns about global economic growth.
Three hours after the close on Wall Street, the Dow Jones was down 0.42% to 31,212, while the broader S&P 500 lost 1.05% to 3,858. The Nasdaq fell 2.00% to 11,403 points, weighed down by the decline of “tech” giants, such as Tesla (-6.4%) or Apple (-1.2%).
Wall Street ended in confusion on Friday after a difficult session, characterized by investor skepticism about the impact that the higher-than-expected job creation rate would have on the Federal Reserve’s monetary policy.
In Europe, the markets were also cautious and closed in the wrong places. In Paris, the CAC 40 lost 0.61% to 5,996 points at 5 pm. In Frankfurt, the Dax fell by 1.40% and in London, the Footsie was stable.
Choices of the week
The release, scheduled for Wednesday, of inflation data for June in the United States will be a key focus this week. The consumer price index is expected to show a rebound from last month’s number, mainly due to higher fuel prices and higher electricity prices.
Investors, looking for information on the Fed’s monetary policy decisions at the end of the month, learned on Friday about the official employment report that also testified to the strength of the labor market.
Publishing the results of the companies, the banks JPMorgan Chase and Morgan Stanley will open the ball for the second quarter on Thursday. According to Citigroup, the company’s profits should be strong in the face of rising inflation and slowing economic growth, which could lead to consolidation in the second half of the year.
Another concern
Markets are affected by the health situation in China, with several Chinese cities announcing new restrictions and lockdowns to combat the COVID-19 outbreak while Shanghai prepares for a new screening campaign.
The dollar rises again
On the foreign exchange market, the euro, which reached close to the dollar on Friday after the publication of the monthly US jobs report, also fell 1.14% to 1.0065. One European currency is mainly punished by the construction of Nord Stream 1, the most important Russian pipeline serving Germany, which is closed for ten days, while the issue of the war in Ukraine raises fears of a long-term stoppage of Russian hydrocarbons. property.
The dollar (+0.99%), for its part, also benefited from its position as a safe haven against other major currencies.
Oil is coming back
Oil prices, penalized by fears of a recession and new health restrictions in China, partially pared their losses. Brent fell 0.51% to 106.47 dollars and American light crude (West Texas Intermediate, WTI) 1.10% to 103.60 dollars.
Behavior
Twitter is down 9.5%. The end of a long soap opera with twists and turns, Elon Musk finally announced on Friday that he was terminating the deal to buy Twitter for 44 billion dollars (43 billion dollars). The richest man in the world, who runs Tesla and SpaceX, criticizes the social network for not providing accurate data on the number of fake accounts and spam.
Las Vegas Sands (-7.8%), Wynn Resorts (-8.5%), Melco Resorts (-12.6%), MGM Resorts (-3.5%), Bilibili (-9.5%) are suffering after all casinos in Macau closed for the first time in years more than two to contain the spread of COVID-19.
Tesla’s yield is falling 6.4%. The United States Motor Vehicle Safety Agency announced Friday that it will open an investigation into a Tesla car crash that killed two people in Florida.
GlobalFoundries (-5.4%) and STMicroelectronics announced their intention to build a semiconductor factory in France.
Abbott Laboratories (-0.3%) announced Saturday that it will reopen its factory in Sturgis, Michigan, and resume production of baby formula there after closing last month due to weather damage.
