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International stock exchanges reacted generally positively to the US Federal Reserve’s interest rate decision yesterday. On Wednesday, the central bank decided to reduce its support purchases faster than previously signaled and allows for six interest rate increases over the next two years. The decision is characterized as a surprising and sharp upward adjustment of the previous estimates.
At the same time, more investors are preparing prolonged unrest, something the interest rate jump in the US, omicron infection, China crises, sanctions, inflation and supply chaos are to blame.
The three leading indices on Wall Street opened in the positive, but then moved in different directions.
At 21:30 it looks like this for the leading indices:
- Industrial-heavy Dow Jones, which consists of 30 hand-picked supposedly important stocks, rises 0.12 percent
- Nasdaq Composite, which is dominated by technology companies, is down 2.2 percent
- The S&P 500 index, which consists of 500 of the largest listed companies in the United States, falls 0.6 percent
Rising interest rate increase
Some companies that have done well in periods of rising interest rates are doing well today, writes CNBC, mentioning the major banks JPMorgan Chase, Citigroup and Bank of America, which are all rising.
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Others struggle more. Technology-dominated Nasdaq is weighed down by Tesla, which at the time of writing is down almost 4.5 percent. The share price has fallen significantly in the last month, among other things after several divestments from Elon Musk, founder and major shareholder. Adobe is down 11 percent after the company announces that they will probably do worse than expected this year, while Apple, the world’s largest company measured in market value, falls above 4 percent.
Graphics card maker Nvidia is down 6.8 percent, while stock trading platform Robinhood is down 8 percent. The rental company Airbnb also does not have a good day, and is down 8 percent.
The exception is the telecom and technology company AT&T, which, however, has a good stock market day and is one of today’s preliminary winners on Wall Street with an increase of about 7 percent. The company was upgraded earlier this week by Morgan Stanley from sales to hold.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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