American stocks pick their breath after gains … and fears of the end of momentum

The Wall Street Stock Exchange showed clear signs of slowdown, after a strong rise that lasted nine consecutive sessions, as the main indicators ended in retreat despite some positive economic data and commercial optimism launched by US Treasury Secretary Scott Bessent, according to the Wall Street Journal.

A collective decline in American indicators

The Standard & Poor’s 500 index fell 0.6%, while the Dow Jones Industrial Index lost about 99 points or 0.2%. The NASDAC complex, which is led by technology shares, also decreased by 0.7%.
Thus, the series of gains that spanned nine sessions stopped, and the high “Standard & Poor’s” height would have recorded the tenth session of the rise since 1995, according to Dow Jones Market data.

What prompted the market to decline?

Despite the support that the markets received from the improvement of the service activity data in the United States, and the promises of the American administration to conclude new trade agreements, the recent wave of rise showed signs of technical exhaustion that prompted customers to reap profits.
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According to analysts, “shares have made strong gains supported by optimistic economic data, and steps from the Trump administration to relieve commercial policies.” Although the Standard & Poor’s 500 index remained low 3.9% since the beginning of the year, it has succeeded in compensating most of the losses it suffered after announcing the customs duties on April 2.

Supporting economic data .. But the impact is limited

Data of the Supply Management Institute (ISM) showed that the activity of the services sector in the United States exceeded expectations, as the Procurement Manager Index rose to 51.6 points in April compared to 50.8 points in March, exceeding 50.4 points estimates.
“Despite the continued challenges of reducing federal agencies, the results are generally improving,” said Steve Miller, head of the Institute’s Service Committee.

Pesent’s comments revive the hopes of investors

Treasury Secretary Scott Besent reinforced hopes to resolve commercial conflicts, in an interview with CNBC that “17 countries have made very good commercial proposals to avoid additional customs duties from the United States.”
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He added that “there is a possibility to achieve concrete progress in the coming weeks” in the commercial talks with China, despite the continuation of the 145% fees on many Chinese imports, which still burden the trade relations between the two largest economies in the world.

Trump’s comments are pressing entertainment companies

On the other hand, the American President’s calls to impose 100%fees imposed on foreign films negatively on the entertainment sector, as Netflix shares decreased by 1.9%, and Paramount Global fell 1.6%.
The shares of Hathaway’s Berkshire Hathaway also decreased by 5.1% after Warren Buffett announced his intention to step down from the CEO by the end of this year.

Energy, bonds and currencies markets

Oil prices fell after an “OPEC+” declared an additional increase in production, to decline in US crude by 2% to $ 57.13 a barrel, the slightest closure since February 2021.
In parallel, the returns of US Treasury bonds increased, as the bond returns rose for ten years to 4.342% from 4.317% on Friday, supported by positive data for the service sector.
As for the currency level, the US dollar index of “Wall Street Journal”, despite the Taiwanese Central Bank denied the extent of American pressure to raise the value of its currency, after an emergency meeting in Taipei.

Limited movements in Europe and Asia

In foreign markets, the Stoxus Europe index recorded 600 minor gains, while the markets of China, Japan, South Korea and the United Kingdom closed their doors due to official holidays.