On Thursday, too, an initial price recovery on the US stock exchanges ultimately collapsed. The leading index Dow Jones Industrial (Dow Jones 30 Industrial), which…
NEW YORK (dpa-AFX) – Also on Thursday, an initial price recovery on the US stock exchanges ultimately collapsed. The leading index Dow Jones Industrial (Dow Jones 30 Industrial), which after one and a half hours of trading was still able to increase significantly by 1.3 percent, gave back the gains in the further course and came under selling pressure in late trading, as on the previous day.
This means that the US stock exchanges were unable to countermove even after four days of heavy losses. Investors seem to repeatedly use rising prices to sell in their concern about sharply rising interest rates in the further course of the year.
In the end, the Dow was down 0.89 percent to 34,715.39 points. The market-wide S&P 500 lost 1.10 percent to 4482.73 points. The technology-heavy NASDAQ 100, which had recently come under more pressure, lost a further 1.34 percent to 14,846.46 points and fell below 15,000 points for the first time since mid-October.
In the past few days, the persistently high level of inflation and the associated expectation of a much more restrictive monetary policy by the US Federal Reserve had weighed on the stock exchanges. Some market participants expect interest rates to rise by half a percentage point at the Fed’s March meeting.
At the top of the Dow, shares of The Travelers rose more than 3 percent to hit a record high. The major insurer managed a jump in profits of more than a third in 2021 despite high hurricane and tornado losses.
The quarterly report from Alcoa (Arconic) was also well received on the market, the price of which rose by 2.7 percent and was close to its highest level since 2008. High prices for aluminum and intermediate products more than compensated for the recently increased costs for energy and raw materials.
On the other hand, the quarterly figures and forecasts of the airlines American Airlines and United Airlines were not worth buying for investors. Both shares lost more than three percent. American Airlines expressed restraint on sales in the current quarter. United Airlines’ current quarter statements also suggested a slower recovery in air travel.
Peloton shares plummeted nearly 24 percent. According to a media report, the manufacturer of fitness equipment is temporarily stopping the production of certain products. The share price had benefited massively from the corona pandemic last year.
The euro weakened against the US dollar, approaching the $1.13 mark. The European Central Bank had previously set the reference rate at $1.1338.
The US bond market was little after the 10-year yield hit another high in more than two years the previous day. On Thursday, the return was 1.83 percent. The futures contract on ten-year Treasuries (T-Note Future) rose by 0.09 percent to 127.78 points./bek/he
— By Benjamin Krieger, dpa-AFX —
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