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MARKET OVERVIEW. The New York Stock Exchange closed lower on Tuesday, in a market concerned about the rise in global interest rates, the US Federal Reserve’s (Fed) monetary policy decision expected on Wednesday and its impact on the economy.
The Toronto Stock Exchange fell almost 1 percent and was sucked into a broader downturn.
Consult market news (again).
Stock market indices at close of trading
In Toronto, the S&P/TSX fell 193.69 points (-0.99%) to 19,368.69 points.
In New York, the S&P500 fell 43.96 points (-1.13%) to 3,855.93 points.
the Nasdaq fell 109.97 points (-0.95%) to 11,425.05 points.
the DOW fell 313.45 points (-1.01%) to 30,706.23 points.
the loons lost $0.0067 (-0.8836%) to $0.7482.
the oil closed at $1.54 (-1.80%) at $84.19.
L’gold fell $4.80 (-0.29%) to $1,673.40.
the Bitcoin fell $558.54 (-2.86%) to $18,970.33.
For analysts at Briefing.com, the continued rise in bond yields was “the most important factor” heading into the session.
The US 10-year Treasury yield rose to 3.60% for the first time since April 2011.
The 2-year rate, more representative of market expectations regarding monetary policy, approached 4% (3.98%), a threshold it has not crossed in almost 15 years.
This interest rate escalation is overshadowing tech stocks, which face the tougher funding conditions they depend on to fuel their growth. Amazon (AMZN, -1.98% to $122.19) and alphabet (GOOGL, -1.95% to $101.14) have paid the price.
Apple pulled him out of the game (AAPL, +1.57% to $156.90), with analysts at Wedbush Securities reporting the “rapid” pace of sales of the new iPhone 14, which launched late last week. The group also benefited from the announcement of a price increase in several countries in Asia and Europe.
“The market is in a wait position,” commented Adam Sarhan of 50 Park Investments. “He’s patient before he sees what the Fed will do,” which is due to announce its monetary policy decision on Wednesday after a two-day meeting.
Above all, the operators are anticipating an increase in the institute’s key interest rate by 0.75 percentage points to a range of 3% to 3.25%.
Investors fear that the Fed’s determination to fight inflation will push the US economy into recession.
Among the few macroeconomic indicators on the day, operators noted that building permits in the United States had slowed significantly in August.
Sentiment was further dampened by a warning from Ford, which reported Monday after trading that its third-quarter results would suffer from a billion-dollar cost hike.
Nevertheless, the manufacturer confirmed its forecast for the annual profit before taxes and interest.
The brutal reaction of the New York market (the stock lost 12.32%), while analysts were rather cautious about the announcement, testifies to the extreme nervousness of Wall Street.
Friday, the courier group FedEx (FDX, -3.38% to $157.40) had previously published results that fell short of expectations, which had caused its volumes to slow globally.
“It changes the dynamic” when it comes to earnings and market forecasts, explained Adam Sarhan. “The market is looking for news that can support it and is having a hard time finding it,” he said.
The technician also applied in the healthcare sector change healthcare jumped up (CHNG, +6.44% to $27.11) upon confirmation of the acquisition by a federal judge in Washington UnitedHealth (UNH, -0.14% to $522.80)which the US Department of Justice wanted to prevent for fear of distorting competition.
Ford’s warning weighed heavily on his archrival General Motors (GM, -5.63% to $39.06)although the latter announced an order for 175,000 of its electric vehicles from car rental company Hertz on Tuesday.
The sports outfitter Nike pulled back (NKE, -4.47% to $102.42) after analysts at Barclays lowered their recommendation citing excessive inventories and a slowdown in demand in China.
The weather remained stormy for the cryptocurrency universe, related caution and coin base (COIN, -2.85% to $67.94), Block (SQ, -3.52% to $61.47) Where Riot Blockchain (RIOT, -4.60% to $6.22) all resigned.