The New York Stock Exchange ended lower on Monday on a lack of news that could have fueled last week’s momentum.
According to the final results, the Dow fell 0.20%, the tech-heavy Nasdaq lost 0.72% and the broader S&P 500 lost 0.30%.
“We were seen as an indecisive meeting as last week’s momentum (…) had lost steam,” Schwab analysts commented in a note.
“Last week’s +rebound+ (buying movement) was very important. It can’t go on like this,” added Gregori Volokhine of Meeschaert Financial Services.
For managers, U.S. May durable goods orders data released on Monday was well above expectations, rising 0.7%, below expectations for a 0.1% increase, which also weighed on the mindset of operators.
“Right now, we’re watching for any indication of inflation or a slowdown in the economy,” he said. “But the numbers are moving in the opposite direction. (…) It reminds us that this economy has not stopped suddenly. »
Bond rates have since risen sharply, a sign that Wall Street expects rates to rise in the coming months. As a result, the yield on the 10-year U.S. government bond is 3.20%, compared to 3.13% on Friday.
“There aren’t too many questions to ask,” says Gregori Volokhine. “When we see interest rates rising, we know the Nasdaq will fall.»
In fact, the giants of the electronic stock market, mostly tech stocks, have retreated from Amazon (-2.78%) to Alphabet (-1.62%) via PayPal (-2,24%).
Conversely, the health sector performed well, ranging from Merck (+1.37%) to UnitedHealth Group (+2.02%).
Elsewhere on the stock exchange, a major consultancy, Institutional Shareholder Services (ISS), advised shareholders to vote for rival Frontier (-11.20%) on Thursday.
The latter’s bid, even though it was raised on Friday, was significantly lower than JetBlue’s (+1.62%), and the latter was entirely in cash, while Frontier’s bid was mostly in stock.
Shares of online brokerage site Robinhood rose 14 percent (to $9.12), according to Bloomberg, sparking interest from the FTX cryptocurrency platform for a possible acquisition.
One of FTX’s rivals, Coinbase, closed with a sharp drop (-10.76%), as did Toronto-listed Voyager Digital (-24.68%). The latter announced that Singapore-based alternative investment firm Three Arrows Capital defaulted on a $350 million loan granted by Voyager.
Investors fled Digital World Acquisition Corp (-9.56% to $25.16), the publicly traded vehicle to merge with Donald Trump’s new media conglomerate. The company said Monday that the operation is the subject of a criminal investigation by federal authorities, which are considering a trial.
AMC theaters jumped (+13.31% to $14.13) after a better-than-expected weekend for “Elvis” to match “Top Gun: Maverick,” which broke the billion-dollar mark globally.