New York (AFP)

The New York Stock Exchange retreated to the opening on Friday, investors hesitant to engage in the face of the uncertainties surrounding the coronavirus and after the recent rise in indices to unprecedented levels.

Around 2:50 p.m. GMT, the Wall Street flagship index, the Dow Jones Industrial Average, fell 0.82% to 28,981.24 points.

The Nasdaq, with a strong technological coloring, dropped 1.20%, to 9,636.01 points, and the S&P 500, which represents the 500 largest companies on Wall Street, lost 0.88%, to 3,343.60 points.

Wall Street had already finished in the red on Thursday, pausing in its race for records while wondering about the economic consequences of the epidemic of viral pneumonia that appeared in China: the Dow Jones fell by 0.44% and the Nasdaq of 0.67%.

"The market continues to try to find the right balance between the fear that the coronavirus that has appeared in China will weigh heavily on corporate profits and the best economic data and profits that we will see in real time," said Art Hogan of National. Holdings, noting that investors are currently monitoring supply chain disruptions in particular.

After Apple, which had shaken the markets earlier this week by warning that viral pneumonia would affect its results, it was Coca-Cola's turn on Friday to warn that the epidemic would weigh on its sales in the first quarter. The soft drink giant hopes to make up the shortfall, however.

Market players, reassured by the apparent slowdown in the spread of the virus earlier in the week, were also worried about the appearance of new outbreaks in Asia, with in particular a doubling of cases in South Korea, some 500 prisoners contaminated in China and two additional deaths in Iran.

Analysts were also increasingly highlighting the paradox between the current strong attraction of investors for gold (at its highest since 2013) and Treasury bills, considered to be safe values, and the recent rise in Wall indices. Street, generally seen as risky assets, to new heights.

"Some investors believe that the stock market is overbought, overcrowded, overvalued and is ready for a correction, which is fueling a rush to safe havens," said Patrick O'Hare of Briefing.

"Some investors also believe that the coronavirus will spread and have a more pronounced impact on economic growth and profits than the stock market thinks", which feeds the attraction for assets deemed to be safer, he added. there.

But at the same time, "the stock market focuses instead on the persistence of low interest rates, its past experiences with viruses (which generally have not led to prolonged stock market downturns, editor's note), and the idea that the Fed is always ready to intervene to stimulate the economy, "said the expert.

"The question now is who in the stock market, bond market or gold is going to sell first," said O'Hare.

A sign of increased interest in the bond market, the 10-year rate on the US debt fell sharply again on Friday, to 1.456% against 1.566% the day before closing. It is at its lowest since September.

© 2020 AFP