New York (AFP)
Wall Street, weighed down by the decline of major technology stocks, ended lower Tuesday, accelerating its losses at the end of the session after statements by the leader of the Republican majority in the Senate on negotiations around measures to help Americans.
Its flagship index, the Dow Jones, fell 0.38% to 27,686.91 points.
The Nasdaq, with strong technological coloring, lost 1.69% to 10,782.83 points and the extended S&P 500 index fell by 0.80% to 3,333.69 points.
From the start of the session, most of the big names in the tech sector retreated, which particularly weighed on the Nasdaq.
This drop is linked, according to several analysts, to a rotation towards cyclical stocks, dependent on an economic recovery, and implies that investors have greater confidence in the future.
According to Maris Ogg of Tower Bridge Advisors, "fear is no longer the dominant factor and market participants are willing to take a little more risk."
Tuesday's optimism is particularly linked to the announcement by Russian President Vladimir Putin that Russia had developed the "first" vaccine against the new coronavirus, called "Sputnik V", and that it gave "lasting immunity" .
The World Health Organization (WHO), however, reacted cautiously to this announcement, recalling that the "prequalification" and approval of a vaccine went through "rigorous" procedures.
However, it reinforces the idea among investors that a vaccine will soon be available even if the virus continues to spread, believes Ms. Ogg.
Less than an hour before the close, the major New York Stock Exchange indices all went into the red after statements on Fox News from Republican Senate boss Mitch McConnell, who was skeptical of the recovery negotiations around new budgetary measures to support the economy.
"The about-face (indices, note) was fast, very probably because of the algorithms, which reacted to the articles on McConnell", observes Quincy Krosby of Prudential Financial.
The White House and Democrats continue to blame each other after two weeks of tense discussions ahead of the presidential election and the four decrees signed by Donald Trump on Saturday.
However, these temporary measures risk being challenged in court since it is in Congress that the US Constitution vests most of the country's budget decisions.
“This is also a market where volumes are lighter due to the summer lull and the market can go up or down much faster than usual,” says Krosby.
- Uber and Lyft down -
Among the values of the day, the car reservation platforms with driver Uber (-3.28%) and Lyft (-1.29%) fell after a preliminary injunction from a California judge to requalify their drivers as employees instead of self-employed workers, which will take effect in ten days if it is not revoked.
The two companies are opposed to this change, ensuring that the status of contractual offers more flexibility to drivers and allows to guarantee a cheaper price for the rides for the users.
The BioNTech laboratory fell 7.44% after reporting larger than expected losses and lower than expected sales in the second quarter. The group also announced that it could present the results of phase 2b / 3 clinical trials for a vaccine project against Covid-19 in October.
Inovio Pharmaceuticals, which reported a quarterly loss of nearly $ 129 million, saw its stock tumble more than 23%. The company also said phase 2/3 trials of its vaccine project would begin in September.
On the bond market, the 10-year US debt rate rose to 0.6399% around 8:45 p.m. GMT against 0.5755% on Monday evening.
© 2020 AFP