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MARKET REVIEW. Wall Street was moving close to equilibrium Thursday at the start of the session, the day after a record for the Dow Jones, continuing to closely observe the rise in the US 10-year bond rate.
The Toronto Stock Exchange was also stable at the opening.
The clues
In Toronto, the S&P/TSX increased by 20 points, or 0.11%, to 18,504 points.
In New York, the S&P 500 lost 4 points, or 0.12%, to 3,920 points.
The Dow Jones fell 22 points, or 0.07%, to 31,939 points.
The Nasdaq was down 27 points, or 0.21%, to 13,570 points.
The context
After slowing on Wednesday in the second half of the session, the yield on US Treasuries picked up again and stood at just over 1.45%, a year-high.
More than the level of this rate, which has remained relatively low historically, it is the rate of increase in recent weeks that seems to raise many questions and concerns among market players.
“This continued rise could mean more difficulties for technology stocks today, but it could also push the financial sector,” said JJ Kinahan of TD Ameritrade.
“Federal Reserve Chairman Jerome Powell told us yesterday that there is still a long way to go before the economy reboots, but the rise in bond yields suggests that some investors are thinking differently”, adds the expert.
Among the indicators, durable goods orders surged in January in the United States, largely exceeding expectations and their pre-pandemic level thanks to new orders up sharply in the aeronautics sector, both civilian and military.
Today’s values
GameStop climbed 40% after having already taken off more than 100% the day before. Alongside a few other stocks popular with amateur investors (AMC, BlackBerry, Bed, Bath & Beyond…), The video game store chain was at the heart of the speculative fever that animated Wall Street at the end of January and once again seemed to be highly sought after by stock marketers.
Twitter rose 6.06% after having posted its objective of doubling its revenues by the end of 2023 and counting 315 million daily active users known as “monetizable”.
Pfizer was gaining 1.99% after a massive study in Israel showing the company’s vaccine was 94% effective against symptomatic cases of COVID-19.
The action of Modern was climbing 6.87% after significantly exceeding expectations for its quarterly revenue and forecasting revenue of more than $ 18 billion this year from the sale of its COVID-19 vaccine.
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