The New York Stock Exchange ended a volatile session lower on Monday, too nervous to solidify last week’s rebound.
According to final results at the close, the Dow Jones stagnated at 35,091.13 points (+0.00%). The Nasdaq, with strong technological coloring, dropped 0.58% to 14,015.67 points. The S&P 500 lost 0.37% to 4,483.87 points.
“For most of the session, we saw the continuation of last week’s rally, but as we approached the close, the indices fell,” observed Peter Cardillo of Spartan Capital.
The previous week, the indices had concluded on the rise for the first week this year: a gain of 1.05% for the Dow Jones, 2.38% for the Nasdaq and 1.55% for the broader S&P 500 index. .
But they are far from having regained the ground lost since the start of the year: the index of star stocks is down more than 3% in 2022, the Nasdaq is close to correction with a drop of almost 10% and the S&P 500 dropped more than 5%.
“It’s a market very subject to volatility but basically, the trend is positive,” assured the analyst.
Nervousness persists “as global markets grapple with the prospect of tighter monetary policies, geopolitical tensions between Russia and Ukraine, and a mixed earnings season,” Schwab analysts said.
Seven of the eleven sectors of the S&P finally ended in the red with in the first place the communication services (-2.24%) whose heavyweights under pressure weighed down the Nasdaq, like Facebook (-5.37% to 198.26 dollars), Twitter (-2.54% to 36 dollars) or Netflix again (-1.97% to 402.10 dollars).
The energy sector did well (+1.31%), despite a slight decline in oil prices, with good performances from Chevron (+1.96%), ExxonMobil (+1.22%) ) and ConocoPhillips (+1.16%).
Automotive stocks did not have a good day, like General Motors (-1.13%), Tesla (-1.73%) or Ford (-0.45%).
In contrast, cruise line stocks posted a solid rebound, such as Norwegian Cruise (+8.40%) and Carnival (7.82%).
Investors were still wary of the US central bank’s (Fed) rate-tightening plans, as the US CPI inflation figure for January is due on Thursday.
“Expect, in this moving Fed rate debate, to talk about inflation on Thursday,” warned Joe Manimbo, foreign exchange market specialist at Western Union.
“Consumer prices are expected to accelerate above December’s 7.1% annual rate, the fastest in decades,” he added.
Yields on 10-year Treasury bills remained around their new high in more than two years reached on Friday, at 1.92%.
On the odds, the title of the low-cost airline Spirit Airlines soared 17.17% to 25.46 dollars after announcing its merger with Frontier Airlines in a transaction valued at 6.6 billion dollars.
Under the deal, which is expected to be finalized in the second half of 2022, Frontier Airlines will control 51.5% of the new entity and Spirit will own the remaining 48.5%.
The action of Frontier Group, the parent company of Frontier Airlines, advanced 3.47% to 12.82 dollars.
Peloton, the maker of smart exercise bikes whose stock has been on a downward spiral in recent months, jumped 20.93% to $29.75.
The markets are buzzing with rumors of negotiations for a takeover of the company, whose title was worth 150 dollars a year ago. Peloton is due to release its financial results on Tuesday.
The American dating site Bumble, sought after in session, finally lost 0.58% to 27.50 dollars after the announcement of a marriage by acquisition with the French start-up Fruitz.