NEW YORK (dpa-AFX) – The US stock market is expected to stabilize on Thursday following heavy losses the previous day. Interest rate sensitive stocks were hit by the sharp rise in interest rates from the US Federal Reserve, which, as expected, had raised the benchmark rate by 75 basis points the previous evening. Investors were concerned about the Fed’s apparent willingness to accept a recession in the fight against inflation.
On Wall Street, Thursday’s pre-market trading turned slightly green. About half an hour before the start of trading, the broker IG rated the leading US index Dow Jones Industrial 0.2 percent more to 30,255 points. The Nasdaq 100 sensitive to interest rates headed for a little less than 0.1 percent at 11,636 points.
“The stock market traders took a message away from yesterday’s Fed meeting: it will get worse before it gets better,” wrote Thomas Altmann, market analyst at QC Partners. In the short term, the interest rate path will rise significantly. In his eyes, the situation should normalize again only in the next year.
Fed Chairman Jerome Powell will continue to tighten interest rate policy until inflation eases, Credit Suisse experts wrote. This feeds concerns about a “hard landing” for the US economy. According to experts, interest rate hikes are likely to remain high for a while. This will continue to weigh on stocks in the future.
Novavax shares have slipped deep red in pre-market trading . Analysts from US bank JPMorgan lowered their expectations from “neutral” to “underweight”. According to analyst Eric Joseph, long-term demand for the Nuvaxovid vaccine is not to be expected. Recent vaccine dynamics in the US and EU point to medium and long-term headwinds. Novavax shares lost about five percent.
Also the shares of Darden Restaurants lost their feathers on Thursday. The restaurant operator made less than expected revenue in the last quarter. Investors recognized this in pre-market trading with a price drop of more than four percent ./jcf/vrb/bek/nas
ISIN US2605661048 XC0009694271 US6311011026 US78378X1072
AXC0200 2022-09-22 / 14: 56
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