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Stock market: Wall Street trending down after the tech rebound

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MARKET REVIEW. The Toronto Stock Exchange’s benchmark index advanced slightly late Tuesday morning as major U.S. indices lost groundafter a positive start to the week driven by technology, as new financial sanctions were announced by Washington against Russia.

On Monday, the indices had started the quarter up, thanks to the good session of the American tech giants.

To (re)consult market news

Stock market indices at 11:53 a.m.

In Toronto, the S&P/TSX decreased by 18.14 points (-0.08%) to 22,067.46 points.

In New York, the S&P500 dropped 29.01 points (-0.63%) to 4,553.63 points.

the Nasdaq yielded 245.38 points (-1.69%) to 14,287.18 points.

the DOW decreased by 70.89 points (-0.20%) to 34,850.99 points.

the loon was up US$0.0023 (+0.2827%) at US$0.8032.

the oil was down US$0.53 (-0.51%) at US$102.75.

I’Where was down US$4.20 (-0.22%) at US$1,929.80.

the bitcoins rose US$96.54 (+0.21%) to US$45,807.15.

The context

The United States stepped up pressure on Moscow by banning Russia from Tuesday from repaying its debt with U.S. dollars held in U.S. banks, raising the risk of a Russian default.

Washington is taking this step as “today is the deadline for Russia to make another debt payment,” the US Treasury said.

For its part, Brussels has announced that it wants to ban purchases of Russian coal, which represent 45% of imports from the European Union.

In Moscow, Vladimir Putin denounced the pressures on Gazprom in Europe and threatened reprisals.

“The situation in the energy field is worsening because of crude measures (…) in particular the administrative pressure on our company Gazprom in several European countries”, he said after Germany announced that it would take temporary control of a German subsidiary of the gas giant.

“There is a bit of hesitation in the market this (Tuesday) morning,” said Patrick O’Hare of Briefing.com.

“Market participants are grappling with the idea that it is going to be more difficult to rally higher given the current environment which includes rising interest rates, lingering inflationary pressures and the continued onslaught of the Russia against Ukraine,” he summed up.

For analysts at Schwab too, the markets are watching closely “the war in Eastern Europe, as the United States and Europe consider new sanctions against Russia”.

On the bond market, yields on 10-year Treasury bonds rose again (2.50%).

Investors will watch the minutes of the last monetary meeting of the American central bank (Federal Reserve, Fed) on Wednesday to assess the state of mind of the members of the Fed’s monetary policy committee (FOMC) regarding the size upcoming rate hikes and central bank balance sheet reduction measures.

One of the members of this committee, Lael Brainard, yet one of the most favorable to an accommodative policy, warned on Tuesday that the Fed was ready to act more strongly on rates to slow inflation.

On the stock market, half of the S&P sectors remained in the green, driven by energy (+1.12%), while crude prices started to rise again with the announcement of new sanctions affecting the Russian energy sector .

The tech sector was floundering (-1.39% for information technology), after having been driven up the day before by the reception given to the Twitter action when Elon Musk announced a takeover. major participation in the social network.

Twitter continued to soar (+3.86%), after jumping 27.12% on Monday to US$49.97 following Elon Musk’s announcement.

As of Tuesday, the management of the social network indicated in a tweet that the leader of Tesla and SpaceX therefore entered the board of directors of the group.

In a surprise move, the wealthy and whimsical entrepreneur acquired 9.2% of the capital of Twitter for nearly US$2.9 billion, instantly becoming its largest shareholder. Elon Musk speaks very frequently on this platform, where he has more than 80 million subscribers.

The cruise line Carnival was celebrated (+7.85% to US$21.28), after reporting that last week the company recorded the best week of bookings in its history.

Starbucks continued to lose more than 3% like the day before. Investors were weighing the decision of general manager Howard Schultz, back at the head of the chain, to suspend the program of redemptions shares, claiming to want to invest “more” in the group.

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