NEW YORK (dpa-AFX) – The joy on the US stock market about the recent price gains after the longer weekend due to the public holidays should disappear again on Wednesday. A good hour before the start of trading in New York, broker IG rated the leading index Dow Jones Industrial at minus 1.3 percent to 30,148 points. The tech-heavy Nasdaq 100 is expected to fall 1.6 percent.
Fed Chair Jerome Powell will hold his regular hearing before the US Senate in midweek. The Federal Reserve recently intensified its fight against high inflation with an unusually large interest rate hike of 0.75 percentage points. It is expected that it will remain true to its course of significantly tighter monetary policy for some time to come.
However, market participants doubt whether it will be able to save the economy from a severe crash in view of the rapid turnaround in interest rates. Falling oil prices are currently reflecting recession fears. The high price gains of oil companies such as Chevron and ExxonMobil, which were high the day before, could therefore dissolve again, as the pre-market losses show. Marathon Oil and Halliburton also fell significantly before the market.
Shares of Kellogg, which benefited from news the day before that the breakfast cereal maker would split into three public companies, fell 1 percent in premarket trading on Wednesday. Analyst Ken Goldman from JPMorgan is skeptical about the project. A split might not change the rating that much, he wrote.
After Davita’s 15 percent slide the day before, the papers also had a hard time stabilizing before the market on Wednesday, they lost 1.4 percent. Davita had suffered a defeat before the US Supreme Court in a dispute over certain dialysis reimbursements./ajx/nas
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