Indicator

The New York Stock Exchange is moving in a mixed order on Tuesday, shortly after opening in the green, reluctant to take a clear direction before the publication of a crucial inflation indicator (CPI) on Wednesday.

Around 2:00 p.m. GMT, the Dow Jones lost 0.15%, the Nasdaq index gained 0.33% and the broader S&P 500 index appreciated by 0.07%.

All three indexes opened on a positive note, before the Dow Jones fell into the red.

“Traders remain ready to regain momentum,” and at the start of each session in recent days, “their first instinct is to buy,” observed Steve Sosnick, analyst at Interactive Brokers, who warns, however, that Wall Street often runs out of steam afterwards.

Investors were also inspired by “the feeling that the CPI is going to be in line with expectations,” explained Quincy Krosby, analyst at LPL Financial.

This American price index will be published on Wednesday. Economists expect a slowdown in inflation in March compared to February, to 0.3% over one month compared to 0.4% previously.

Even if they forecast, on the other hand, an acceleration over one year, to 3.4% against 3.2%, “if the figures are in line with the consensus, the market will not take it negatively”, anticipates Quincy Krosby.

“I would not be surprised if we continued to oscillate” around the balance on Tuesday, after a similar movement on Monday, typical of periods devoid of news which precede an indicator of importance, notes Steve Sosnick.

On the bond market, the yield on 10-year US government bonds fell to 4.37%, compared to 4.42% the day before at closing.

For Quincy Krosby, this relaxation is, in part, attributable to the statements of the former president of the branch of the Fed (American central bank) in Saint-Louis, James Bullard, who left his post last year.

This former influential member of the institution still expects three rate cuts this year, even though many operators are now betting on only two cuts.

On the market, the Norfolk Southern railway company (+1.09%) benefited from an agreement reached to settle a class action relating to the derailment of a freight train containing harmful chemicals, in February 2023. The group of Atlanta will pay $600 million to local residents, some of whom had to be evacuated.

Financials weighed down the Dow Jones, from American Express (-1.37%) to Visa (-1.20%), including JPMorgan Chase (-0.98%), whose boss, Jamie Dimon, warned , Monday, that the economy could experience some turbulence in the coming months, breaking with the dominant scenario of a soft landing.

Tesla progressed (+2.50%) after reaching an amicable agreement with the family of an Apple engineer who died in a road accident, in return for a payment, the amount of which was not revealed. Relatives claimed that the driver assistance system had malfunctioned and was partially responsible for the accident.

This agreement saves the car manufacturer from a trial which would have been an opportunity to return in detail to Tesla’s driving assistance software, “Autopilot”, the subject of several legal proceedings.

Donald Trump’s media group, Trump Media and Technology Group, sank further (-0.67%).

The entity has lost more than half of its stock market value since its peak two weeks ago, erasing, in the process, more than $3 billion from the personal fortune of the former American head of state. .

Alphabet (+2.27%) was supported by the announcement of the launch of its new chip, called Axion, developed in collaboration with the British Arm and intended for data storage centers and the development of artificial intelligence.

2024-04-09 13:31:40
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