Wall Street hesitates, the Nasdaq at a record

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August 17, 2020
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August 19, 2020

Wall Street hesitates, the Nasdaq at a record

The New York Stock Exchange ended in scattered order on Monday, with the Nasdaq hitting a new high thanks to big names in tech in a limited trading market in midsummer.

The highly technological index climbed 1.00% to reach 11,129.73 points.

E-commerce giant Amazon was up 1.09%, chipmaker Nvidia 6.7%, and electric vehicle maker Tesla, often referred to as a tech group, jumped 11.20% .

Wall Street’s flagship index, the Dow Jones, for its part fell 0.31% to 27,844.91 points.

The broader S&P 500 index rose 0.27% to 3,381.99 points, narrowly missing a new record.

“Without any big news to justify a new rise in the indices, we see a now usual scenario repeating itself, with a particularly solid technology sector while the other sectors remain quieter”, notes Peter Cardillo, head of market strategy at Spartan Capital Securities.

“The exchanges will probably remain within a limited range as long as there is no important information on the government’s aid package or on the presidential election,” adds the specialist. “It’s not unusual at this time of the end of summer vacation.”

– Merchant results –

“There seem to be three key themes at play in the market right now: When will we break the budget deadlock in Congress on the next stimulus package? What effect will the slower-than-expected reopening of the economy have? Have on consumption? And when can we reasonably expect to have an effective vaccine against Covid-19? “, remarks for his part Art Hogan of National Holdings.

So far, Democrats and Republicans have still not been able to agree on new financial assistance for Americans and parliamentarians are on recess until mid-September. No discussion is a priori planned between the main negotiators in the coming days.

Since the start of the summer however, “the markets have always more or less considered the glass to be half full, with the help of a season of less bad results than expected”, underlines Mr. Hogan.

Among the values ​​of the day, Principia Biopharma jumped 9.4% after the announcement of its acquisition for about $ 3.7 billion by the French pharmaceutical group Sanofi.

The American Express credit card issuer fell 2.9% after announcing the takeover of the small business lending site Kabbage. The group did not specify for what amount. During the week, quarterly figures for several big names in the business, including supermarket giant Walmart on Tuesday, will be released. The results of home goods and DIY specialists The Home Depot, expected Tuesday, and Lowes, expected Wednesday, may have benefited from the lockdown, which has prompted many households to carry out work on their homes.Chains Target, Kohls and TJX are also due to disclose their accounts this week, as is shoe seller Foot Locker on Friday.On the bond market, the 10-year rate on US debt fell to 0.6866% from 0.7094% on Friday night.