The floor of the New York Stock Exchange (GETTY IMAGES NORTH AMERICA/SPENCER PLATT)
The New York Stock Exchange ended lower Friday at its lowest level in two months, fears of FedEx’s earnings warning and the prospect of a series of further sharp interest rate hikes cast doubt on the viability of the US economy. to land slowly.
The Dow Jones lost 0.45%, to 30,822.43 points, the Nasdaq index fell 0.90%, to 11,448.40 points, and the S&P 500 index fell 0.72%, to 3,873.33 points.
Since its summer peak in mid-August, the S&P 500 has lost nearly 11% and is down 19% since the start of the year.
“Markets remain jittery,” Schwab analysts said in a note, a statement “made worse by the dire picture painted by FedEx.”
The courier group published Thursday, after the stock market and in advance, the results were below expectations. The FedEx title was cut, losing 21.39% in one session, to 161.04 dollars.
Managing Director Raj Subramaniam spoke about the deteriorating macroeconomic environment at the end of the accounting quarter, which ended at the end of August. “We are seeing a decline in volumes in all segments, globally,” said the manager, in an interview with CNBC.
He said he expected the world economy to soon go into a recession. Due to uncertainty about the state of the economy, the group withdrew its annual forecasts.
“The FedEx warning is a significant factor today,” said Tom Cahill of Ventura Wealth Management.
For him, it adds to a series of lackluster macroeconomic indicators, including retail sales on Thursday, which fell 0.3% in a month excluding the sale of cars and spare parts.
“The data trend is going in the wrong direction,” says Tom Cahill. “It looks like consumers are starting to relax” in their spending.
Consumption accounts for more than two-thirds of America’s gross domestic product (GDP), a proportion higher than that of all other major countries.
The state of the day did not improve the index of consumer confidence, published by the University of Michigan, which is from August, but analysts were disappointed.
Wall Street is watching with concern the rise in bond yields, which picked up speed this week with the recalibration of operators’ expectations for monetary policy, convinced that the American central bank (Fed) hit even harder than expected.
The yield on 10-year US government bonds tightened slightly, to 3.45%, against 3.44% the previous day.
Built on a model of continuous growth, technology companies are very sensitive to funding conditions, which have been particularly strained by the Fed’s key rate hikes.
Many tech stocks fell to their lowest levels of the year on Friday, such as Alphabet (-0.26%) or Meta (-2.18%), which have not seen these valuation levels since the start of the pandemic of the coronavirus.
On the other hand, the so-called defensive stocks, ie less sensitive to the economic situation, held their own, especially the cable operator Comcast (+1.53%), McDonald’s (+0.57%), Johnson and Johnson ( +1.53%). or Merck (+1.12%).
Uber fell significantly (-3.62% to 31.93 dollars) after the group reported a “cybersecurity incident”. According to the New York Times, an 18-year-old hacker broke into the car reservation platform’s internal network and gained access to source code and emails, among other things.
The failures of its competitor in the market for cars with a driver (VTC) also punished Lyft (-4.24%).
Similarly, UPS joined the fall of FedEx and fell 4.48% to $176.71.
General Electric suffered (-3.66% to 66.39 dollars) from the statements of its chief financial officer, Carolina Dybeck, who indicated that the conglomerate continues to suffer from supply and supply chain problems, which may limit group benefits.
The action of the photo agency Getty Images collapsed (-36.40% to 8.49 dollars) after the publication of a document before a capital increase with the market regulatory authority, the SEC.