PARIS (Reuters) – The New York Stock Exchange opened lower on Wednesday, hit by disappointing corporate results and rising bond yields.
In early trading, the Dow Jones index lost 106.97 points, or 0.31%, to 33,869.66 points and the broader Standard & Poor’s 500 fell 0.42% to 4,137.29 points.
The Nasdaq Composite lost 0.55%, or 66.479 points, to 12,086.933.
At the same time, the yield on two- and ten-year Treasuries are up four basis points after hitting a one-month high earlier as traders less certain of a Federal Reserve rate cut. This year.
In an interview with Reuters on Tuesday, St. Louis Fed chief James Bullard said that far from pausing, the central bank should continue raising rates given the persistence of inflation.
“The market is pretty much resigned to the idea of a 25 basis point hike in May, so it’s more the back and forth of expectations of a rate cut that’s causing volatility in the US bond market,” said Ray Attrill, at National Australia Bank.
Last major bank to have published its first quarter results, Morgan Stanley dropped 2.11% in reaction to the drop in its profit, hampered by the difficulties of its investment banking division.
Netflix slumps 4.67% after reporting disappointing current quarter forecasts and Tesla shares fall 2.70% as further price cuts for some of the automaker’s electric vehicles in the US raise concerns over its profit margins.
Elon Musk’s group will publish its results after the US market closes.
(Laetitia Volga, edited by Blandine Hénault)
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