NEW YORK (AP) — Stocks in New York have closed trading with losses. Earlier in the day, the visit of top American politician Nancy Pelosi to Taiwan caused caution among investors. In addition, comments from a leader of the Federal Reserve showed that the central bank umbrella is far from planning to stop raising interest rates. Tech company Uber gained almost a fifth in market value after well-received quarterly figures.
The Dow Jones Industrial Average ended 1.2 percent lower at 32,396.17 points. The broad S&P 500 fell 0.7 percent to 4091.19 points and the Nasdaq closed 0.2 percent lower at 12,348.76 points.
Uber jumped 19 percent. The number of taxi rides via the company’s app has increased again now that the corona pandemic has faded into the background in many countries. More meals were also delivered, despite the fact that that branch had grown strongly during the corona time. As a result, Uber saw its turnover more than double last quarter.
Inflation
At the same time, stock markets were processing an interview in which Mary Daly, the president of the local San Francisco Federal Reserve, said there is still a lot of work to be done before inflation in the US is at the desired level. Her Cleveland counterpart told The Washington Post that there is no convincing evidence yet that price increases have peaked. This points to higher interest rates in the future, which are generally unfavorable for equity valuations.
The start of trading was dominated by news of Pelosi’s visit to Taiwan, but then the indicators fluctuated between gains and losses. China sees the trip of the Speaker of the US House of Representatives as a provocation because the island belongs to the People’s Republic in Beijing’s eyes. The Chinese military announced military exercises near Taiwan.
Caterpillar
Caterpillar fell 5.8 percent. The producer of, among other things, excavators and bulldozers made more profit than expected last quarter, but turnover was somewhat disappointing. Caterpillar suffered from the departure from Russia and supply problems, among other things.
Pinterest shot up 11.5 percent. Investors reacted enthusiastically to the news that activist investor Elliott Management is now the largest shareholder in the digital photo bulletin board.
Euro
The euro was worth $1,0169, against $1.0209 at the close of the European stock markets. The price of a barrel of US oil rose 0.4 percent to $ 94.23 and Brent oil became 0.1 percent more expensive at $ 100.14 a barrel.
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