PARIS (Reuters) – American stock markets fell at the opening on Monday under pressure from yields at their highest since 2007 for the American 10-year bond.
In early trading, the Dow Jones index lost 141.60 points, or 0.43% to 32,985.68 points and the broader Standard & Poor’s 500 fell 0.38% to 4,208.06 points. The Nasdaq Composite lost 0.39% or 50.95 points, to 12,932.855.
US yields resumed their progression on Monday, after having declined at the end of last week during a broad movement of risk aversion.
The combination of activity resistant to rate increases, labor markets still under pressure and significant financing needs from the American government have triggered bond sales, while investors position themselves for high key rates for longer than ‘anticipated.
The return on safe assets therefore becomes more attractive and attracts investors away from assets with less relevant risk-adjusted returns, such as stocks.
Geopolitical uncertainty adds to market concerns.
The week will also be marked by the publication of inflation in the United States on Friday, and results from many companies this week, including Microsoft, Alphabet, Amazon and Meta Platforms.
In terms of values, Chevron lost 2.10% after announcing on Monday the acquisition of Hess (+0.17%) as part of an all-stock transaction worth $53 billion.
Tesla said on Monday its 2023 capital spending would exceed the $7 billion to $9 billion target set earlier this year as the electric vehicle maker ramps up production at its factories, losing 1.03% in the quarter. opening.
(Written by Corentin Chappron, edited by Kate Entringer)
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