(Photo: Getty Images)
MARKET REVIEW. The New York Stock Exchange closed sharply lower on Friday, ending another dark week one step away from its lowest levels of the year, fueled by recession anxiety caused by the brutal monetary tightening underway.
The Toronto Stock Exchange closed sharply lower on commodity prices.
To (re)consult market news
Stock indices at closing
In Toronto, the S&P/TSX closed 521.70 points (-2.75%) to 18,480.98 points.
In New York, the S&P500 it fell 64.76 points (-1.72%) to 3,693.23 points.
the nasdaq it ended with a drop of 198.88 points (-1.80%) to 10,867.93 points.
the DOW closed down 486.27 points (-1.62%) to 29,590.41 points.
the loon lost $0.0054 (-0.7229%) to $0.7361.
the oil fell US$4.16 (-4.98%) to US$79.33.
L’Prayed closed down US$29.60 (-1.76%) at US$1,651.50.
the bitcoin it lost $365.93 (-1.90%) to $18,930.26.
“The market is finally accepting the Fed [banque centrale américaine] to the letter: they will cause a recession to fight inflation,” said Chris Zaccarelli, Independent Advisor Alliance. “This is bad news for the markets, and even worse for workers and the economy.”
Investors continued to react this way to the Fed’s statement, which on Wednesday raised its rate by 0.75 percentage point, but also signaled that it expected it to rise higher, and for longer, than Wall Street predicted.
On Friday, the market opted to “sell now and ask questions later,” summed up Quincy Krosby of LPL Financial. “We opted for cash, because volatility and uncertainty are increasing.”
The VIX index, which measures market volatility, thus rose to its highest level in more than three months.
While Wall Street’s three-star indices finished a bit above their lowest levels for the year in the session, “they look like they want to go lower, to the point where all headwinds will be discounted,” according to Quincy Krosby.
The color of the session did not improve, on the contrary, with the publication of the PMI index, which showed a clear upturn in activity in the United States in September.
“Any time we get a better-than-expected indicator, traders anticipate that it will allow the Fed to be even more aggressive on rates,” said Oanda’s Edward Moya.
The atmosphere is all the more pessimistic as no important indicator is expected before next Friday and the PCE price index, whose scope is relativized by the fact that it is late and does not correspond to September, but to August.
Hundreds of shares hit their lowest level of the year on Friday. The technology sector has been particularly affected, as dell (DELL, -2.09% to $35.52), HP (HPQ, -1.40% to $25.35), Intel (INTC, -1.96% to $27.52) Where Nvidia (NVDA, -0.36% to $125.16)which lost nearly two-thirds of its capitalization in one year.
But berezine hasn’t been limited to technology, and several “old” economy heavyweights have also visited unseen depths since at least this time last year, from the chemical group. dow (DOW, -1.94% to $43.90) to the conglomerate 3M (MMM, -1.01% to $112.99)going by Visa (V, -0.98% to $183.96)the telecommunications operator AT&T (T, -1.42% to US$16.01) Where Nike (NKE, -1.55% to $97.02).
Also at the lowest point of the year, the messaging group FedEx (FDX, -3.37% to $149.33), which posted results well below market expectations, a week after an early initial release. The group has announced a savings plan of 2.2 to 2.7 million dollars per year and an increase in its prices of at least 6.9% on average on January 1.
boeing was nailed to the ground (BA, -5.37% to $131.26) after the announcement, on Thursday after the stock market, of an amicable agreement with the US market regulator, the SEC, which accused the aircraft manufacturer of having lied about the risks presented by its 737 MAX aircraft. The transaction provides for the payment of compensation of 200 million dollars.
The semi-wholesale supermarket chain Costco was rejected (COST, -4.26% to US$466.40) despite the publication of a higher-than-expected quarterly profit. The group has seen the cost of its products rise faster than its turnover.
The bond market evolved in a loose order. While the 2-year US interest rate rose again to 4.26%, the 10-year US government bond yield fell to 3.68%, from 3.71% the previous day.
“As long as the 10-year rate goes down, the market should remain stable,” argued Jack Ablin of Cresset Capital. The contraction of this rate reflects expectations of a recession in the medium term, and would help limit the tightening of credit conditions in the United States, which would be favorable for the economy and the stock markets.
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