Wall Street slowed down by the withdrawal of the tenors of the tech - France 24

New York (AFP)

The New York Stock Exchange ended in loose order Tuesday in a market boosted by rather encouraging quarterly results from several large companies, but undermined by the decline of Internet giants.

Its flagship index, the Dow Jones Industrial Average, rose 0.60% to 26,840.40 points.

The extended S&P 500 index rose 0.17% to 3,257.30 points.

The Nasdaq, on the other hand, lost 0.81% to 10,680.36 points.

The index with strong technological coloring of Wall Street suffered in particular from the decline of the shares of Apple (-1.38%), Amazon (-1.83%), Microsoft (-1.35%), Facebook (-1 , 50%) and Alphabet (-0.51%), the parent company of Google.

According to Quincy Krosby, these declines are linked to profit taking and portfolio readjustments in favor of smaller groups, as evidenced by the rise of the Russell 2000 index (+ 1.33%), which represents 2,000 companies listed on Wall Street with a small cap.

"When there are fears about growth, investors and brokers favor technology stocks, which shrinks the market," explains this head of market strategy at Prudential.

On the contrary, in times of optimism, the market tends to expand into a greater diversity of stocks and sectors.

Investor confidence on Tuesday was linked in part to hopes that further budget support measures would soon be passed by Congress, Krosby said.

The leader of the Republicans in the House of Representatives, Kevin McCarthy, however, said on Tuesday on financial news channel CNBC that there would probably not be an agreement on a text before August.

This would mean in particular the end of a measure which provides for the weekly payment of 600 additional dollars to the unemployed Americans to cope with the impact of the coronavirus and which expires at the end of the month.

Across the Atlantic, European leaders concluded at dawn on Tuesday a historic agreement intended to support their economies hit by the new coronavirus crisis, based for the first time on a common debt.

This package provides for a fund of 750 billion euros, including 390 billion in subsidies, allocated to the states most affected by the pandemic.

On the health front, "there are indications that the rates of hospitalization and death linked to the virus have reached a peak" in the main foci in the United States, notes Quincy Krosby.

The New York market has also continued to digest the quarterly results of large American groups such as the soft drink giant Coca-Cola (+ 2.34%), whose outlook for the rest of the year reassured investors. , offsetting the collapse of the group's sales at the height of the confinement.

In the bond market, the 10-year rate on US debt fell to 0.6020% around 8:30 p.m. GMT from 0.6102% at Monday's close.

© 2020 AFP