Wall Street ends in very slight decline after records and a good month of August

The New York Stock Exchange closed very slightly on Tuesday, dropping from its records of the day before, but it concluded with a good month of August.

According to final results, the Dow Jones index dropped 0.11% to 35,360.60 points. The technology-intensive Nasdaq remained close to its Monday high (-0.04%) at 15,259.24 points. The S&P 500 is also slightly down from its peak of the day before at 4,522.57 points (-0.14%).

The month of August, traditionally considered one of the worst months for investors, therefore ended this year on a very positive note.

Over the month, the Dow Jones gained 1.22%, the Nasdaq climbed 4% and the S&P 500 by 2.90%.

The market ended in slight decline “after a very solid month and several record sessions in August”, commented for AFP Peter Cardillo of Spartan Capital Securities. Wall Street has seen a dozen record sessions this month, despite being known to be inactive.

“This bodes well for September, traditionally seen as a difficult month for investors,” added the analyst for whom the market fundamentals “remain strong, especially since interest rates do not go up. not increase anytime soon “.

While Fed boss Jerome Powell confirmed on Friday that a reduction in asset purchases by the US Central Bank was likely by the end of the year, he did not give a timetable and especially clarified that a hike in interest rates was not imminent, while they have been kept at zero since the start of the epidemic.

“The decrease in treasury bill purchases will probably start in the 4th quarter but this is a factor already taken into account” by the market, according to Mr. Cardillo. “The key is that the Fed will wait a while before changing rates. Until that rate needle moves, the September blues should not set in,” assured the economist.

Disappointing indicators

Poor indicators made investors cautious on Tuesday.

American consumer confidence fell in August to its lowest level since February, their morale being weighed down by the Delta variant which is weighing on the economic recovery, but also by the rise in prices.

The index released Tuesday by the Conference Board fell to 113.8 points, against 125.1 points in July (revised down).

In addition, the growth of manufacturing activity slowed sharply in August in the Chicago region, penalized by difficulties in obtaining raw materials. The index fell to 66.8 points in August, its lowest level since June.

Investors are especially watching the US employment figures for August which will be released on Friday.

The markets also followed Tuesday the acceleration of inflation in the euro zone which jumped to 3%, its highest level in ten years.

If the European Central Bank (ECB) does not consider, at this stage, to tighten its accommodating monetary policy, it is holding its Governing Council on September 9 and there will be debate, in particular on asset purchases.

On the stock chart, the Zoom videoconferencing platform plunged 16.69% to $ 289.50 after disappointing results.

The app, which has taken full advantage of the boom in telecommuting and homeschooling since the start of the pandemic, saw its growth rate slow down drastically in Q2, even though it remains at 54% .

The title of Moderna laboratories climbed 1.62% to 376.69 dollars after the publication of a Belgian study indicating that its vaccine produces more antibodies than its rival Pfizer (-1.45%).

Apple, which had reached an all-time high the day before, lost 0.84% ​​to 151.83 dollars shaken by a law adopted in South Korea which undermines its monopoly on the payment system for applications via its App Store.

Shares of video game groups, which had been affected on Monday by China’s decision to regulate teenage play time, gained ground as Chinese internet giant Tencent (+ 5.95% to 61, 78 dollars), Activision Blizzard (+ 1.54% to 82.37 dollars) and Electronic Arts (+ 1.46% to 145.21 dollars).

Yields on 10-year bonds climbed to 1.31% from 1.27% the previous day.