PARIS (Reuters) – The New York Stock Exchange opened in disarray on Friday, with investors digesting the implications of new customs duties announced by the US president-elect, while awaiting the publication of the “minutes” of the Fed that could provide clues about the trajectory of interest rates.
In early trading, the Dow Jones index lost 128.47 points, or 0.29%, to 44,608.10 points. The broader Standard & Poor’s 500 rose 14.36 points, or 0.24%, to 6,001.73 points.
The Nasdaq Composite took 62 points, or 0.33%, to 19,116.83 points.
US President-elect Donald Trump pledged on Monday to impose significant tariffs on imports from the United States’ three largest trading partners (Canada, Mexico and China).
Automakers like Ford and General Motors, which have highly integrated supply chains in Mexico, the United States and Canada – could suffer from these customs surcharges.
Some analysts, however, believe that these threats could simply be used as a negotiating tool.
“At this point, it’s probably premature to say anything about it. But I don’t think it’s anything definitive,” said Joe Saluzzi, co-head of equity trading at Themis Trading.
The market is also consolidating as the benchmark S&P 500 index reached a record level on Monday and recorded its sixth consecutive session of gains, while the Russell 2000 index of small caps broke its session record dating back to is three years old.
Investors are now awaiting the minutes of the latest monetary policy meeting of the American Federal Reserve scheduled for the evening, which could provide information on the central bank’s next decisions. The publication of the PCE inflation index, scheduled for Wednesday, could also contribute.
In the meantime, the yield on ten-year Treasury bonds rose 3.9 basis points, to 4.3023%, the day after a sharp drop linked to Donald Trump’s appointment of hedge fund manager Scott Bessent as chairman. Secretary of the Treasury.
In terms of values, Amgen fell 11.49%, its experimental drug against obesity having failed to meet expectations. Its competitor Eli Lilly rose 3.71% after current US President Joe Biden proposed extending Medicare and Medicaid coverage for anti-obesity treatments.
Kohl’s plunged 20.12% after announcing that it anticipated a greater than expected drop in its annual sales.
*For values to track, click [L5N3MX0PS]
(Written by Claude Chendjou, edited by Augustin Turpin)
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