Wall Street ends in disorganized order, record for the Dow Jones

Wall Street ends in disorganized order, record for the Dow Jones

New York (AFP) – The New York Stock Exchange finished mixed on Monday, with the Dow Jones notching a new closing record in a consolidating market devoid of any major event and already awaiting the release of an inflation indicator on Tuesday.

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The Dow Jones gained 0.33%, the Nasdaq index lost 0.30% and the broader S&P 500 index fell 0.09%.

Wall Street has advanced in 14 of the past 15 weeks, a first since 1972, capped off with the S&P 500 posting a record above the symbolic 5,000-point threshold on Friday.

“The market needs to catch its breath from time to time,” said Steve Sosnick of Interactive Brokers. “It’s healthy. We’ve done a lot of climbing in a very short time. It seems reasonable to me to go up and down for a day or two, or even a little longer.”

Largely responsible for Wall Street’s flamboyant performance over the past year, tech sector stars have regained some momentum, including Microsoft (-1.26%), Apple (-0.90%) and Amazon (-0.90 %).

Unashamedly strong semiconductor maker Nvidia (+0.16%), at the center of the artificial intelligence (AI) fever, has managed to stay in the green.

The Santa Clara group is up 46% since the beginning of the year and has increased its value almost fivefold (4.7) since the launch of ChatGPT in late November 2022.

Nvidia even briefly overtook the giant Amazon on Monday to enter the circle of the five largest capitalizations in the world.

Also well positioned in the AI ​​race, chip designer Arm jumped another 29.30% during the session. In one week, its capitalization more than doubled.

The low price fluctuations, with 90% of the securities owned by the investment company SoftBank, accentuate the security’s volatility and its tendency to experience sudden price fluctuations. The British company saw its capitalization double in one week.

In this breathing session, the Dow Jones performed well, to the point of setting a new record. This is mainly due to defensive shares, i.e. theoretically less sensitive to the economic situation, in particular Nike (+2.56%), the DIY chain Home Depot (+0.63%) and the industrial conglomerates 3M (+1.86%) and Dow (+1.48%).

The bond market remained calm, in the absence of major releases or important news. The yield on the 10-year U.S. Treasury note was 4.17% at the close on Friday.

Investors are waiting for the CPI price index for January, which will deliver inflation news on Tuesday. Economists expect an index below 3% for the first time in almost three years, at 2.9%.

“There is nervousness,” warns Steve Sosnick for the CPI, “because we consider the risk of disappointment greater than the opportunity to make an impression.”

On the stock market, Diamondback Energy (+9.38%) rose after announcing the acquisition of competitor Endeavor Energy for approximately $26 billion. The combination of the two groups will create a shale oil giant in the Permian Basin, a region spanning western Texas and southeastern New Mexico.

The operation supported other players in the sector, such as ExxonMobil (+1.38%) and Chevron (+0.69%).

Values ​​related to cryptocurrencies took the lead from bitcoin, which crossed the $50,000 mark on Monday for the first time since late 2021.

Digital currency exchange platform Coinbase performed (+3.75%), as did rival Robinhood (+3.98%).

The clothing holding company VF Corp, which mainly controls Vans and Timberland, shot up (+12.94%) after a member of the founding family backed the activist fund Engaged Capital, which is demanding an overhaul of its board of directors. and strategy.

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