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MARKET REVIEW. The Toronto Stock Exchange returned more than 200 points late Tuesday morning, dragged down by losses in the base metals, information technology and industrial sectors, while the major American indices They were also retiring.
The New York Stock Exchange opened slightly lower on Tuesday, still frozen awaiting communication from the American central bank (Fed) on Wednesday, and upset by the rise in rates and oil prices.
To (re)consult market news
Stock market indices at noon
In Toronto, the S&P/TSX lost 244.81 points (-1.19%) to 20,250.35 points.
In New York, the S&P 500 fell by 30.26 points (-0.68%) to 4423.27 points.
THE Nasdaq lost 108.65 points (-0.79%) to 13,602.75 points.
THE DOW decreased by 257.12 points (-0.74%) to 34,367.18 points.
THE loon rose by US$0.0033 (+0.4507%) to US$0.7444.
THE oil gained US$1.12 (+1.22%) to US$92.60.
L’gold rose by US$0.60 (+0.03%) to US$1,954.00.
THE bitcoin gained US$173.66 (+0.64%) to US$26,436.03.
Context
“The market is struggling to find direction before the Fed’s decision tomorrow,” explained Adam Sarhan of 50 Park Investments. Operators are counting, almost unanimously, on a status quo from the Federal Reserve on Wednesday, but will be attentive to the comments and forecasts of the members of the institution.
In the meantime, the New York market watched with anxiety as bond rates rose ever higher. The yield on 10-year US government bonds once again came close to a 15-year high on Tuesday, at 4.3607% (compared to 4.3618% at the end of August), compared to 4.30% the day before at the close.
Patrick O’Hare, from Briefing.com, also noted the new surge in oil, now close to its highest levels in a year, with a barrel of Brent from the North Sea only a breath away from the 100 American dollars ($US).
“These movements are dissuasive for investors, who are worried about their consequences for growth and consumption, which are interconnected,” the analyst underlined in a note.
The excitement of black gold boosted oil prices, such as ExxonMobil (XOM, +0.50%), ConocoPhillips (COP, +0.12%)or the oil services Halliburton (HAL, +0.20%).
On the other hand, the tension in the bond market was undermining the technology sector, which depends on credit conditions to finance its growth. Amazon (AMZN, -2.26%), Nvidia (NVDA, -0.87%) And Microsoft (MSFT, -0.65%) were thus moving in the red.
However, Adam Sarhan saw in the small extent of the decline indications of reason to be optimistic.
“Even with rates rising, China slowing down, inflation picking up again and the barrel close to 100 dollars, elements which would normally lead to a correction, the market continues to move up and down,” within tight margins, argues the manager, for whom “it’s encouraging.”
The session will be animated by the debut of the grocery delivery platform Instacart (CART)which set its issue price on Monday at US$30 per share, which values the San Francisco start-up at around US$8.3 billion (US$B), and nearly 10B US$ including titles awarded to employees and managers.
Still in the chapter of introductions, the designer of microprocessors Arm (ARM) continued its uncontrolled slide (ARM, -6.36%). Since its first cannonball session (+24.69%), on Thursday, its market capitalization has fallen by almost US$10 billion.
On the rise, the steelmaker U.S. Steel was rising in temperature (USSX34.SA, +3.54%) after publishing, on Monday, forecasts higher than analysts’ expectations for the third quarter, thanks to higher than expected prices and lower costs.
Block (SQ) was targeted (SQ, -2.79%)after the announcement of the departure of the general manager of its digital payments subsidiary Square, who will be replaced by the group’s boss Jack Dorsey.
The Chinese electric vehicle manufacturer NIO dived (NIO, -11.11%) after announcing the issuance of bonds convertible into shares worth US$1 billion, an operation which will dilute the value of existing securities.
NIO’s competitors were also hard hit, like XPeng (XPEV, -3.02%), Rivian (RIVN, -6.37%) or even You’re here (TSLA, -1.29%).
