Expected to rise slightly, Wall Street was hesitant on Tuesday, as bond yields rose ahead of a speech by the Fed Chairman later in the day.

At the end of the morning, the Dow Jones was still up 0.2% at 37,804.2 points, while the Nasdaq Composite was down 0.1% at 15,878.1 points.804.2 points, while the Nasdaq Composite was down 0.1% at 15,878.1 points.

After easing off early in the morning, US yields continued to climb, as recent US economic indicators made the scenario of a Fed rate cut less likely.

On the government bond market, the yield on 10-year Treasuries climbed back above the 4.65% mark, returning to its highest level since last November.

It is gradually approaching the 5% threshold reached in October, which was, for the record, the highest level since 2007.

The fact that bond yields are approaching their highest levels since the financial crisis is penalizing risk appetite", comment Goldman Sachs strategists.

"The combination of disappointing economic growth and rising bond yields, without any improvement in activity, could further weigh on equity markets", they warn.

The continuing rise in bond yields is having an impact on the technology sector, which is considered to be particularly sensitive to changes in interest rates.

Apple has lost 2% and Tesla 2.9%, falling back below the $500 billion market capitalization mark.

AMD nevertheless managed to gain 1.6% after HSBC raised its recommendation, expressing confidence in the group's prospects in graphics processors for AI.

High yields are also preventing equities from responding positively to good corporate results.

Morgan Stanley nevertheless stood out with a gain of over 3% following quarterly results well above consensus, thanks in particular to the good health of its investment banking division, led by IPO.

Bank of America - whose quarterly performance was more mixed - lost 3.7% in early trading.

Johnson & Johnson is also down 1.7% on the back of an unsurprising quarterly publication, which was accompanied by an increase in the quarterly dividend.

Jerome Powell, Chairman of the Federal Reserve, is due to speak at lunchtime at a conference devoted to the Canadian economy, but organized from Washington.

Copyright (c) 2024 CercleFinance.com. All rights reserved.