The New York Stock Exchange ended the week lower on Friday, however managed to limit its losses thanks to a technical rebound, even as investors remained gloomy.
The Dow Jones lost 0.30%, to end at 32,899.37 points, the NASDAQ index fell 1.40%, to 12,144.66 points, and the broader S&P 500 index gained 0.57%, to 4123.34 points.
After experiencing its worst session since 2020 on Thursday, the New York market initially seemed set to revive a nightmare at the start of the session, with the NASDAQ down as much as 2.65%.
The index with strong technological flavor even momentarily dropped below 12,000 points for the first time in 16 months, posting a loss of more than 26% since hitting in November.
Peter Cardillo, of Spartan Capital, warned that the indices are approaching, on the downside, important technical thresholds and are likely to find material for a rebound there. That’s what happened in the middle of the morning.
The mechanism worked and prevented prices from falling lowerexplained Karl Haeling, of the LBBW bank. But it might be better if they drop again by 5%.like the day before.
For the analyst, this technical rebound reduces the likelihood that investors will consider current levels as a floor and start buying again.
The tight job market
The monthly US employment report, published before the stock market, did not help operators escape their darkness.
First attracted by the creation of 428,000 jobs in April, a number higher than expected, then they saw less encouraging elements.
The downward revision of 39,000 for the month of March slowed the April number.
In addition, economists have expressed concern about the slight decline in the labor force participation rate (ratio between people working or looking for work and working-age population), while the labor market is very tense. na.
There is nothing there that can guide the Fed in one way or another.however Chris Low, of FHN Financial graduated.
Bonds are popular
In the bond market, yields continue to rise, fueled by the hope that the American central bank’s (Fed) core interest rate will reach at least 3% by the end of the year, a scenario that is likely is 85% for operators.
Yield on 10-year U.S. government bonds climbed to 3.14%, not far from 3.26%, which is the highest level in its last 11 years.
Ultimately, the question is whether it is possible for monetary policy to lower inflation to an acceptable pace without causing a long-term recession.argument by Karl Haeling.
Sharp decline in the sportswear sector
On the stock exchange, Under Armor was faced by investors (-25.88% to US $ 9.85) after results and forecasts were deemed disappointing. The sports equipment manufacturer expects a decline in its margins as well as a loss of growth of approximately 3 percentage points due to supply problems.
The publication came in tandem with German Adidas, which also suffered incarceration in China and lowered its goals to the margin for the year.
This poor number has fallen across the sportswear sector, from Nike (-3.49%) to Lululemon (-7.73%).
Food delivery platform DoorDash was penalized (-1.42% to US $ 72.11) despite higher expected earnings as investors remained on continued decline in growth, after 2020 vintages and 2021 fuel-driven pandemics.
It’s also a tough day (-7.70% to US $ 15.70) for exercise bikes and connected treadmill specialist Peloton, which is looking for investors willing to take a minority stake of around 15 to 20%, depending on wall street journalto bail the coffers of the group, which are currently struggling.
Source: Radio-Canada
