MARKET REVIEW. The New York Stock Exchange closed the week at half-staff, given the tension in bond rates, the rise in the dollar and the price of oil.
Canada’s main stock index fell on Friday, part of a broader pullback that also hit US markets and saw heavy losses across the technology and crypto sectors.
To (re)consult market news
Stock indices at closing
In Toronto, the S&P/TSX it fell 153.99 points (-0.76%) to 20,111.38 points.
In New York, the S&P500 it fell 55.26 points (-1.29%) to 4,228.48 points.
the nasdaq it fell 260.13 points (-2.01%) to 12,705.21 points.
the DOW it fell 292.30 points (-0.86%) to 33,706.74 points.
the loon fell US$0.0032 (-0.4079%) to US$0.7695.
the oil it fell US$0.48 (-0.53%) to US$90.02.
Prayed fell US$10.60 (-0.60%) to US$1,760.60.
the bitcoin fell US$2,171.13 (-9.27%) to US$21,252.11.
Wall Street first digested “comments from several regional Fed officials,” who insisted on the need to continue monetary tightening to curb inflation, Wells Fargo analysts summarized.
The president of the regional branch of the Saint-Louis Fed, James Bullard, had indicated on Thursday “lean at this time, towards 75 basis points” for the next rate hike in September.
The one from the Richmond branch, Thomas Barkin, reminded him on Friday that the acceleration next month of the reduction of the balance sheet of the Federal Reserve (Fed), by stopping reinvesting in assets, would further tighten financial conditions.
Will the key to the Fed’s messages be given at next week’s Jackson Hole central bankers symposium, where Fed chief Jerome Powell will speak on Friday?
“Are they going to give signals about future monetary policy as they have done in previous years? Are you going to insist on the need for a restrictive policy?” LBBW’s Karl Haeling asked.
In the bond market, rates rose to more than 2.97% from 2.88% the day before for 10-year Treasury bills, the highest in a month.
Bond yields are “going up around the world and that’s weighing on stocks,” said Peter Cardillo of Spartan Capital Securities.
Karl Haeling also pointed out that “the downward pressure on the stock and bond market came from Europe” with the high inflation rates announced in July in the United Kingdom (+10.1%) and in Germany (+7.5 %).
“The impact on the US economy is that if Europe has so many inflationary pressures, they will last longer in the United States,” he added.
Oil prices gained ground, buoyed by the gas crisis in Europe; the barrel of American WTI once again exceeded 90 dollars.
Risk asset par excellence, bitcoin fell 9.39% to $21,231. The virtual currency has lost more than $2,000 in the last twenty-four hours.
The Nasdaq, where many technology stocks, riskier assets and very sensitive to rate hikes, are concentrated, was the most affected.
Target (BF) lost 3.84%, Alphabet (GOOG) 2.27%, Tesla (TSLA) 2.05%.
As to Apple (AAPL)which also discovered a security flaw in its iPhones and iPads that “could have been actively exploited” by hackers, lost 1.51%.
the vehicle manufacturer Rivian (RIVN) It fell 4.04% to $34.45 after announcing that it was ending production of its cheaper version of its truck.
the oil group Occidental Petroleum (OXY) jumped 9.88% to 71.29% when Warren Buffett (Berkshire Hathaway) got a regulatory green light to increase his stake to 50%.
The announcement by General Motors (GM) redistributing a dividend and resuming a share buyback program were well received (+2.53%).
The highly speculative title of the struggling home goods brand, Bed Bath and Beyond (BBBY)it plunged 40.54% to $11.03 after the defection of one of its main shareholders.
Ryan Cohen, the owner of the video game store chain, Game Stop (GME)divested a stake of around 11.8% in the company.
Earlier in the week, he revealed his capital raise, leading investors to believe he was going to be a long-term partner and causing the stock to double in value in a matter of days.
Some investors have felt misguided and are calling for an investigation by the stock market cop, the SEC.
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