Wall Street ends lower, momentum falters after strong week

The New York Stock Exchange ended lower on Monday, amid a lack of news that could fuel last week’s momentum.

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The Dow Jones fell 0.20%, the tech-heavy Nasdaq index fell 0.72%, and the broader S&P 500 index lost 0.30%, according to final results.

“We were treated to an indecisive session, because the momentum of last week (…) ran out of steam”, commented, in a note, the analysts of Schwab.

“Last week’s “rally” (buying movement) was very important. It couldn’t go on like this,” added Gregori Volokhine, of Meeschaert Financial Services.

For the manager, the fact that the figure for durable goods orders in the United States in May, published on Monday, came out well above expectations, at 0.7% increase against 0.1% expected, also played on the situation. mindset of operators.

“Right now, we are looking at all the indications related to inflation or the slowdown in the economy,” he said. But the numbers were going in the opposite direction. (…) It reminded us that this economy was not at all coming to an abrupt end.”

In the process, bond rates rose quite sharply, a sign that Wall Street expects interest rates to rise in the months to come. The yield on 10-year US government bonds stood at 3.20%, against 3.13% on Friday.

“There weren’t too many questions to ask,” according to Gregori Volokhine. “When we saw rates go up, we knew the Nasdaq was going to go down.”

In fact, the giants of the electronic stock market, mainly technology stocks, have beaten a retreat, from Amazon (-2.78%) to Alphabet (-1.62%), via PayPal (-2 ,24%).

Conversely, the health sector performed well, from Merck (+1.37%) to UnitedHealth Group (+2.02%).

Elsewhere on the stock exchange, the company Spirit Airlines fell back (-7.95% to 22.57 dollars) after the recommendation of a major consulting firm Institutional Shareholder Services (ISS) to shareholders to vote, Thursday, in favor the takeover by competitor Frontier (-11.20%).

The latter’s offer, even raised on Friday, is significantly lower than that of JetBlue (+1.62%%) which, moreover, is entirely in cash, while that of Frontier is mainly in shares.

The online brokerage site Robinhood took off 14% (to 9.12 dollars) on the basis of information from the Bloomberg agency evoking the interest of the FTX cryptocurrency platform for a possible takeover.

One of FTX’s competitors, Coinbase, ended on a sharp decline (-10.76%), as did Voyager Digital (-24.68%), listed in Toronto. The latter announced that the Singaporean alternative investment company Three Arrows Capital had defaulted on a loan of 350 million dollars granted by Voyager.

Investors fled Digital World Acquisition Corp (-9.56% to 25.16 dollars), the listed vehicle which is to merge with Donald Trump’s new media group. The company said Monday that the operation was the subject of a criminal investigation by federal authorities, who are considering a trial.

The AMC cinema chain jumped (+ 13.31% to 14.13 dollars), after a weekend which saw the film “Elvis” do better than expected at the box office, matching with “Top Gun : Maverick”, which crossed the billion dollar mark worldwide.


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