New York (AFP)

The New York Stock Exchange retreated Friday morning, the day after the Federal Reserve (Fed) decision to halt the share buyback programs of the major American banks.

Around 2:10 p.m. GMT, its flagship index, the Dow Jones Industrial Average, fell by 1.29% to 25,413.03 points.

The Nasdaq, with a strong technological coloring, yielded 1.03% to 9,913.68 points.

The broad S&P 500 index lost 0.91% to 3,055.74 points.

Wall Street had finished up Thursday thanks to a rebound at the end of the session and the good health of bank stocks, which welcomed the decision of several regulators to relax a rule against speculation by financial organizations: the Dow Jones had won 1.18% and the Nasdaq rose 1.10%.

But on Friday morning, the banking sector looked gray, reacting to announcements from the Fed on Thursday evening, following the bank stress tests conducted by the institution.

The 34 largest banks in the United States will have to suspend their share buyback programs in the third quarter and limit the payment of dividends to shareholders.

The move "was first and foremost out of prudence given the uncertainties surrounding the Covid-19 rather than because of extreme concern over the levels of capital held by banks," said Patrick O'Hare of Briefing. com.

The titles of JP Morgan Chase (-3.73%), Bank of America (-4.24%), Citigroup (-3.67%), Wells Fargo (-5.46%), Goldman Sachs (-6, 32%) and Morgan Stanley (-2.79%) were down.

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Among the indicators, household spending in the United States rebounded 8.2% in May compared to the previous month, a sign that the American economy is slowly recovering from the economic slump caused by the Covid-19 pandemic, according to data from the Labor Department.

Inflation, on the other hand, started to rise again in May at + 0.1% when analysts expected it to remain unchanged. In April, consumer prices fell 0.5%.

Consumer confidence in the United States, for its part, improved less sharply than expected in June amid a resurgence of the Covid-19 pandemic, according to the final estimate of the University of Michigan.

On the bond market, the 10-year rate on the US debt fell, to 0.6594% against 0.6856% Thursday evening.

Among the values ​​of the day, Nike fell 4.42%. The comma brand unveiled Thursday evening a net loss of $ 790 million in the last quarter of its staggered fiscal year, suffering from a drop in sales due to the closure of many stores with the Covid-19 pandemic.

Gap jumped 37.25%. The American ready-to-wear brand has entered into a partnership with rapper and producer Kanye West's Yeezy brand and will launch a dedicated line in 2021.

Amazon appreciated 0.24%. The online retail giant has confirmed the acquisition of the young American push Zoox, specializing in autonomous vehicles, but the amount of the transaction has not been disclosed.

Virgin Galactic rose 1.70%. Space tourism company announced on Thursday evening the success of its second glide flight over New Mexico, marking another step towards the launch of its commercial service

© 2020 AFP