Wall Street negative, with the Dow Jones losing around 180 points (-0.55%), at 34,127 points, and the S&P falling by 0.51% to 4,323 points. The Nasdaq lost 0.40% to 14.375 points.
Yesterday the Dow Jones Industrial Average jumped 311.75 points to 34,314.67 points, while the S&P 500 rose 1.05% to 4,345.72 points; the Nasdaq Composite posted a 1.25% rise to 14,433.83.
Looking at the first three sessions in October, it emerges that the Dow Jones gained 483 points in the first session, then lost 324 points in the second and climbed 312 points in the third.
“For sure, October will confirm its reputation as the most volatile month of the year. We expect the fluctuations to persist for an even longer period of time,” commented Ryan Detrick of LPL Financial, according to CNBC.
Today is a bad day for world stock exchanges, marked by the fear of stagflation, which is gripping investors more and more: a world that is also grappling with an energy crisis that risks ballasting, with the soaring prices of oil and gas. natural, and gasoline, the propensity to spend on the part of global consumers, thus holding back the post-Covid-19 recovery.
The US employment report drawn up by ADP, relating to employment in the private sector, was made known before the start of negotiations.
The data showed that 568,000 new jobs were created in September, better than the +425,000 payroll growth estimated by analysts interviewed by the Dow Jones. The figure was also better than the growth of 340,000 new jobs in August (revised down from the growth of +374,000 initially reported).
At this point, there is great anticipation for the US employment report for September, which will be issued the day after tomorrow, Friday 8 October, at 2.30 pm Italian time.
Although today’s data was better than expected, 10-year Treasury rates dampen gains and, after rising above the 1.56% threshold tested last week, to their highs since June, they retrace to around 1.52% .
Among the stocks under pressure on Wall Street are those of the airlines American Airlines and JetBlue:
American Airlines loses more than 4%, while JetBlue loses more than 4.5% after Goldman Sachs downgrade.
Analysts at the investment bank have revised down the valuation on American Airlines stock from “neutral” to “sell”, cutting the price target by 16% to $ 18. The rating of the JetBlue stock was revised downwards from “buy” to “neutral”, against a target price that was instead raised by 5.5% to $ 17.
Goldman Sachs motivated its downgrades with higher fuel prices and slowing demand in the near term.
Also down on Wall Street are other stocks of companies that have benefited more than others from the reopening of the global economy, such as Boeing, General Electric and Ford.
And they also sell Big Tech stocks, such as Facebook, Apple and Microsoft. In contrast to Amazon, slightly up.
Solid dollar, at the expense of the euro, which travels below the $ 1.16 threshold, around $ 1.1544, accelerating further to the downside, around the lows of the last 14 months tested last week. The yen slows to a one-week low of JPY 111.64, not far from the 18-month low of JPY 112.08 tested on Thursday. The Dollar Index travels around 94,082 points.
In the background, the fear of a US default, which could materialize if Capitol Hill fails to raise or suspend the debt ceiling by the deadline of October 18.
US Treasury Secretary Janet Yellen yesterday sounded the alarm on the risk of recession in the United States in the event of a debt default; In the last few hours, an appeal to avert the disaster has also come from US President Joe Biden, Joe Biden, who has blamed the Republicans for the standstill in Congress.
“Not only are the Republicans not doing their job – he thundered – But they are threatening to use their power to stop us from doing our job, which is to save the economy from a catastrophic event. I frankly believe that this is all. hypocritical, dangerous, scandalous “.
Any “failure to raise the debt limit will fuel doubts about Congress’s willingness to honor debts that have already been incurred – not new debts – debts that already exist. And this would undermine the security of US Treasuries and the status of reserve dollar as a global currency, which the world relies on, “Biden continued.