Wall Street opened down sharply Thursday, finding no reason to reconnect with optimism before a new discourse in the late afternoon by the President of the US Federal Reserve Janet Yellen: 1.25 the Dow Jones lost 1% and the Nasdaq , 13%.
Around 10:15, the index Featured Dow Jones Industrial Average fell by 203.84 points 16 075.92 points and the Nasdaq, dominated by technology, 53.54 points to 4699.17 points.
The expanded index S & P 500, closely watched by investors, lost 1.07% or 20.83 points to 1917.93 points.
On Wednesday, the New York Stock Exchange had ended slightly down, unwilling to take risks given the lack of news and clarification on the intentions of the Federal Reserve: the Dow had ceded 0.31% to 16,279, 89 points and the Nasdaq 0.08% to 4752.74 points.
“US stocks are in significant decline early in the day, throbbing with concerns for global growth while uncertainty (intentions) the Fed still floats before the speech by Janet Yellen,” noted the analysts Charles Schwab.
While the Japanese and European stock popped down, the first American of the day indicators could not cheer investors: the weekly jobless claims are rising, though still lower than expected, and orders for durable goods fell by 2% in August, as expected.
“This figure remains at a level suggesting that manufacturing dock,” said Patrick O’Hare at Briefing.com.
Meanwhile Yellen’s speech, a week after the Fed’s decision to leave interest rates at their lowest, “worries about global growth, declining oil prices, the threat related to the case of emissions in the automotive sector (…) and poor durable goods orders allow the operators ready to face down “market, he enumerated.
Analysts at Charles Schwab, citing an analysis of Bloomberg, investors now expect 43% on a rise in US interest rates in December and 51% in January.
The market tends to be concerned that the Fed may well withdraw support for the economy, but paradoxically it has stopped worrying since last week that the Fed decision to postpone this adjustment reflects a fear that the US economy is too fragile to resist.
By midmorning, sales of new homes are displayed in higher-than-expected in August, but are permanently door indices.
The consulting company Accenture, including forecasts, clouded by the prospect of a strong dollar, have disappointed the market, lost 0.92% to 96.96 dollars despite quarterly and annual profits and turnover have shown beyond expectations.
Caterpillar unscrewed from 6.94% to 65.34 dollars: the specialist for construction machines, whose activity is linked to a commodity sector in crisis, announced it would eliminate 10,000 jobs worldwide 2018, or 9% of its workforce, and close more than two dozen sites.
Coca-Cola yielded just 0.33% to 38.63 dollars after announcing a reorganization of its bottling operations in the United States.
The conglomerate General Electric lost 1.87% to 24.67 dollars after announcing that it planned to create a thousand jobs in the UK in the field of energy.
Finally, the major car manufacturers continued to face collateral victims of the cheating scandal in pollution controls at Volkswagen. The public wonders if similar practices occur in other brands, now that BMW is accused by the German press to go beyond the European emission standards: Fiat-Chrysler tumbled 5.34% to 12.95 dollars, Ford yielded 1.57% to 13.47 dollars and General Motors 1.72% to 29.21 dollars.
The bond market was rising. The yield on ten-year Treasury flowed at 2.090% against 2.151% Wednesday night, and that good for 30 years at 2.879% against 2.946%.