Wall Street ends with riots, a crazy week of exhaustion

The New York Stock Exchange closed on Friday with a mixed note, failing to regress after Thursday’s downturn due to a lack of investor confidence and an even more volatile market due to technical factors. The Dow Jones industrial average was down 0.13%, the Nasdaq Index was up 1.43% and the broader S&P 500 Index was up 0.22%. The approach of a long weekend for Bok Forest from Bokeh Capital Partners (the market will be closed on Monday) reduced the number of traders on Friday, which weighed on Wall Street’s ability to find a clear direction. In addition, Friday marked the end of the options period, those financial commodities that allow you to bet on the evolution of stock indexes up or down.

This: “Witches’ Day”Traders say it is traditionally a source of growing instability. “It was a little day in vain”said Kim Forrest. “Although finishing is always a good thing.” “Markets have come down a lot, but it ‘s not enough for us to talk about the tax, so we’re taking a little technical break.” explained Carl Helling of LBBW. The S&P 500 fell 5.79% during the week. “There is a lot to digest” he continued. “And that’s pretty confusing.” The New York Stock Exchange suffered a higher-than-expected price index last Friday, a sharp rise in the US Federal Reserve (Fed) interest rate and a wave of panic over the prospect of a possible recession.

Restless climate

On Friday, hopes for a strong technical recovery also faded with a series of disappointing indicators that fueled the thesis of a continuing slowdown in the US economy. Industrial production in the United States in May increased by only 0.2% compared to April, which is lower than the 0.5% expected by economists. Another disappointment is that the level of use of production capacities has increased only very modestly, up to 79.0% (78.9% in April) against the expected 79.3%. An even darker poll by the Conference Board Institute found that 76% of the 750 executives surveyed worldwide believed that either a recession was looming on the horizon or that it was already effective. “Everyone is afraid of a recession next year, but it is possible that we are already in a recession.” Carl Heiling noted that the US gross domestic product (GDP) fell in the first quarter, as the Fed Atlanta revised its growth forecast for the second quarter to 0%, up from 0.9% so far.

In this turbulent environment, bonds have once again become popular with investors. The yield on 10-year US government bonds, which moves against their price, decreased from 3.30% to 3.23%. On the one hand, the software maker Adobe was sanctioned (-1.18% to $ 360.79) after revising its lower net profit forecast, in particular due to the growing impact of the aftermath of the Ukraine war. dollars. Biotech Seagen (+ 12.72% up to $ 165.45) was searched after the Wall Street Journal reported a possible purchase by the American pharmaceutical company Merck (-0.32%). US steelmaker US Steel (+ 1.58% down to $ 19.89) gained from post-closure forecasts on Wednesday that profits were much higher than analysts expected.

The group says rising steel prices are more than offsetting rising energy costs. Two days after filing for bankruptcy, the Revlon cosmetics group went on sale (+ 91.28% to $ 3.73) following the publication of an article in the Economic Times reporting on the Indian conglomerate Reliance Industries’ interest in a possible takeover. The WWE group, which leads the wrestling scheme of World Wrestling Entertainment, fell (-3.64% to $ 62.51) after the announcement of the temporary resignation of its iconic leader Vince McMahon, on the condition that the employee be investigated. Oil companies have borne the brunt of the decline in gold prices, from ExxonMobil (-5.77%) to Chevron (-4.57%).