New York equities: losses – big decline and Fed meeting ahead | news

NEW YORK (dpa-AFX) – On the last trading day of the week, price losses determined the picture on the US stock exchange. The leading index Dow Jones Industrial (Dow Jones 30 Industrial) fell on Friday by 0.63 percent to 34 534 points. On a weekly basis, the Dow is thus posting a slight loss. Over the course of the week, the index fluctuated below 35,000 points.

The so-called great decline on the futures exchanges could hold back prices. On these four trading days a year, the stock business is usually determined by trading-technical aspects. The expiry date had also weighed on the courses on Europe’s stock exchanges. But the meeting of the US Federal Reserve on Wednesday next week is already casting its shadow and is causing nervousness among investors.

The market-wide S&P 500 lost one percent to 4430 counters. The technology-heavy NASDAQ 100 fell further with minus 1.38 percent to 15 301 points. Here investors took price gains, especially in stocks from the semiconductor industry. Recently, papers such as NXP Semiconductors, Xilinx or those of the Dutch ASML (ASML NV), also listed in New York, had reached record levels.

The “big decline” is when the last trading day of all four types of derivatives, ie options and futures contracts on indices and individual stocks, falls on the same day. Share prices and indices are then prone to fluctuations even without specific news, because investors try to move the prices in the direction that is favorable for them shortly before these derivatives expire.

Price-moving corporate news was in short supply ahead of the weekend. According to the Wall Street Journal, the investment company Invesco is in talks about a takeover of the financial services company State Street. Invesco shares then rose 4.7 percent, while State Street fell 3.2 percent.

The steel manufacturer United States Steel is considering building another steel mill. As a result, the share price plummeted by more than eight percent. Analysts worry that additional production capacity could result in oversupply. Morgan Stanley’s Carlos de Alba pointed out that US Steel could use a large portion of the cash on the construction./bek/men

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