Negative closing for S&P 500 and Nasdaq despite intra-conference records

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The main Wall Street indexes did not manage to keep their gains until the end, with the technology Nasdaq falling 1.3% and the S&P 500 losing 0.3%, despite the new highs found earlier. The Dow Jones managed to keep the positive sign until the end, closing with small gains of 0.1%.

The rally in US bond yields in the wake of US President Joe Biden’s decision to nominate Federal Reserve Chairman Jerome Powell for a second term at the helm of central bank has hit Wall Street. Lael Brainard, member of the Board The Fed, which was the other central bank claimant, was nominated by Biden as vice president of the central bank.

The White House rulings on the Fed put an end to the uncertainty about who will take on the difficult task of leading the central bank to the historic turning point it needs to make, abandoning its easing policies to tackle the inflation rally.

In their first statements after the White House announcements, Powell and Brainard clarified their priorities from now on, noting the corrosive impact that high inflation has on the US economy and households.

In a statement following President Biden’s announcement of the top two positions at the central bank, the two officials said they knew how damaging inflation had become.

“We know that high inflation has a serious impact on households, especially those who are less able to afford the higher costs of essential goods such as food, housing and transportation,” Powell said as he stood by President Biden. event at the White House. “We will use our tools to support the economy – with a strong labor market – and to prevent high inflation.”

Markets are now waiting for the Fed to abandon the zero interest rate policy in 2022, making at least two increases. In this climate, the 10-year US yield was found today to climb 8 basis points to 1.63%.

Indicators – Statistics

On the board, the industrial Dow Jones gained 17.27 points or 0.05% and closed at 35,619.25 points, while the broader S&P 500 lost 15.02 points or -0.32% at 4,682.94 points. The technology Nasdaq fell 202.68 points or -1.26% to 15,854.76 points.

Of the 30 stocks that make up the Dow Jones industrial average, 20 closed with a positive sign and 10 with a negative. The biggest gains were made by Travelers with gains of $ 4.34 or 2.85% at $ 156.87, followed by Cisco Systems at $ 54.60 with an increase of 2.54% and Dow at $ 58.79. with gains of 2.53%.

The biggest losses were recorded by Visa (-2.63%), Boeing (-1.98%) and Amgen (-1.63%).

The market starts the week in a festive atmosphere in view of the holiday on Thursday for Thanksgiving, while on Friday the meeting will be smaller, due to Black Friday. Investors are optimistic about the turnover during the holidays, with the National Trade Union forecasting sales growth in November and December by 8.5% and 10% this year to about $ 850 billion.

At the macro level of the day, the US economy regained its momentum in October, following the sluggish growth of recent months, according to data from the Federal Reserve Bank of Chicago.

In particular, the Chicago Fed’s national activity index rose to 0.76 points last month from -0.18 points that fell in September, surpassing the converging estimates of economists in a FactSet poll that expected an increase to 0.17 points.

The Chicago Central Bank Index is made up of 85 economic indicators from almost all business categories, which fall into four broad categories: output and income, employment, unemployment and hours worked, personal consumption and housing, and sales, orders and inventories. A positive indicator of the indicator shows growth above the historical trend, while a negative measurement corresponds to growth below the trend.

At the same time, sales of used homes rose in October, exceeding analysts’ estimates, in a new indication that demand remains strong across the country.

In particular, sales of used homes increased by 0.8% in October from the previous month, to the seasonally adjusted size of 6.34 million as announced by the National Union of Realtors. Analysts’ average estimates in a MarketWatch poll put sales at 6.2 million.

The average price for a used home in October was $ 353,900, up more than 13% compared to October 2020.

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