2024-08-07 21:37:03
Investors remain nervous after the fall in the indexes at the beginning of the week and despite the opening session in the green.
The New York Stock Exchange closed lower on Wednesday, with investors remaining nervous after a fall in indexes earlier in the week and despite opening the session in the green. The Dow Jones index lost 0.60% to 38,763.45 points, the technology dominated Nasdaq lost 1.05% to 16,195.81 points and the S&P 500 dropped 0.77% to 5199.50 points. The VIX index, say “Fear Index” because it marks the changes of the market, has gone up.
Wall Street, however, got off to a flying start, with the Dow Jones gaining 1% and the Nasdaq up nearly 2%, after reassuring comments from the Bank of Japan (BoJ). The markets have in fact been reassured by the announcements of the governor of the BoJ, Shinichi Uchida, who indicated that the latter will not raise its rates. “When Financial Markets Don’t Stop”.
On Monday, expectations of further rate hikes from the BoJ pushed the yen to highs not seen since the beginning of the year, leading to speculation trading liquidity in “carry the business” on Japanese currency. This weighed on global stock indexes and bond rates at the start of the week. THE “carry the business” in borrowing money in the country’s currency the central bank charges low rates to invest in assets with higher yields. “After an event like the one at the beginning of the week, it is normal for the market to be volatile”estimated Steve Sosnick, Analyst at Interactive Brokers.
Karl Haeling, LBBW analyst, for his part emphasized that the withdrawal from the activities of “carry the business” or continue that. “At the beginning of the week, JPMorgan warned that 50% of the transfer business still has to be negative”, he said. U.S. indices are also beginning to reverse direction after the worst recovery in the 10-year U.S. Treasury bond has seen poor demand. On the stock market, Disney fell 4.47% to 85.95 dollars, with a return to profits in the third quarter of its fiscal year and an increase in its turnover greater than analysts’ expectations.
Tech megacaps
The entertainment giant welcomed the operation in its streaming service (Disney +, ESPN +, Hulu) and film production (Pixar), but considered a less bright future for the parks, which its career dream is expected to build dropped in the fourth month. Disneyland Paris in particular has suffered competition from the Olympic Games in the French capital. Many stocks in the travel sector went down, such as Airbnb (-13.38% to $113.01).
The accommodation rental platform certainly achieved a change in line with forecasts in the second quarter, but forecasts were lower than analysts for the next quarter, indicating a decrease in demand from American tourists. Travel site Tripadvisor fell 16.61% to $13.61. Shares of Expedia and Bookings also ended in losses of more than 3%. Most of the eleven S&P sectors went into the red, including discretionary funds (-1.16%) and information technology (-0.74%).
Tech mega-caps, which led the rise of the Nasdaq at the open, changed direction, with Nvidia losing 5.08%, Meta 1.05% and Tesla 4.43%. The performance of Lumen, a specialist in communications infrastructure, increased by more than 32% to $6.63, after the group announced large orders linked to the development of artificial intelligence, which boosted its cash flow.
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