(News Bulletin 247) – Wall Street showed heaviness on Monday, faced with the rise in geopolitical risk with the events of the weekend in Russia: if the Dow Jones ended down only less than 0.1% at 33,715 points, the Nasdaq Composite fell almost 1.2% to 13,336 points.
Many strategists, however, believed that the failed insurrection attempt by the paramilitary group Wagner in Russia did not foreshadow a change likely to affect the market.
“From our point of view, these are typically the kind of geopolitical events that are widely commented on but have absolutely no impact on investments,” Liberum said.
Some risk aversion nevertheless benefited Treasuries, as shown by a drop in the 10-year rate of two basis points towards 3.71%, while a firmness in oil prices favored big names in the sector such as Chevron (+1.8%).
Another winner of the session, IBM took 1.5% following an agreement with Vista Equity Partners for the purchase of Apptio, a group of financial and operational IT management and optimization software, for 4, $6 billion.
Moderna gained 3%, supported by an increase in recommendation at UBS to ‘buy’, while Tesla on the contrary dropped 6.1% on a deterioration at Goldman Sachs, which is no longer a buyer of the title.
Pfizer lost 3.7% under the weight of the health group’s decision to halt clinical development of lotiglipron, for the potential treatment of adults with obesity and type 2 diabetes.
No US indicator was on the day’s agenda, but traders should pay attention this week to a final estimate of GDP growth, then household income and spending, along with a PCE price index.
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