Wednesday, 08/16/2023 8:00 p.m. by dpa-AFX
NEW YORK (dpa-AFX) – An attempt to recover after the previous day’s losses did not last long on the US stock exchanges on Wednesday. At times all three major indices had made it into the plus, but two and a half hours before the end they were all below the line again. Investors are now awaiting minutes from the US Federal Reserve’s July meeting, which will be released shortly and could provide more insight into future interest rates.
The Dow Jones Industrial fell 0.14 percent to 34,897.97 points, while the market-wide S&P 500 fell 0.22 percent to 4,428.27 points. The technology-heavy Nasdaq 100 recorded the biggest losses with a discount of 0.40 percent to 14977.74 points. At times it slipped even more sharply to 14,925 points, the lowest level in more than two months. The Dow is at its lowest level since mid-July.
The fact that US manufacturing increased production again in July after two consecutive declines did not help the markets. Concerns about China continue to smolder in the background, especially since the US rating agency Fitch announced that it might want to reconsider its assessment of the creditworthiness of Chinese government bonds. “Despite numerous government stimulus measures, China’s economic problems continue to weigh on the markets,” said a broker.
Among the individual values, the Target shares were a positive exception on the broad stock market with an increase of 3.6 percent. Against the background of very low expectations, as pointed out by Bernstein Research expert Dean Rosenblum, the discounter surprised with better-than-expected earnings per share and a surprisingly strong gross margin in the second quarter.
With 2.4 percent, the shares of the chip group Intel came under pressure in the Dow. The semiconductor group blew off the multi-billion dollar takeover of the Israeli semiconductor group Tower Semiconductor due to a lack of approvals. Even if this was not seen as a big surprise by experts, the takeover target’s shares fell by eight percent. Bernstein expert Stacy Rasgon told Intel that the failure was somewhat disappointing in view of the planned expansion of production capacities.
On the Nasdaq, shares of Tesla, recently at a two-month low, continued their recent slide at a discount of 1.7 percent. Since their interim high in July, they have already lost 23.5 percent. Price reductions continue to upset investors: The electric car manufacturer reduced its prices for certain models in China for the second time within three days.
Otherwise, all eyes were on the shares of the Vietnamese electric car manufacturer Vinfast, which had started brilliantly on the Nasdaq the day before. After the course had multiplied, a fifth of the market value was lost again. With its strong debut, Vinfast, which went public via a special purpose vehicle, easily outperformed the valuations of the major US automakers Ford and General Motors./tih/he
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2023-08-16 18:00:00
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