NEW YORK (dpa-AFX) – The US stock market has taken a breather after two turbulent trading days. Ahead of the release of the latest US Federal Reserve Minutes, movements were contained on Wednesday.
The leading index Dow Jones Industrial fell by 0.11 percent to 31,893.77 points. For the market-wide S&P 500
it went up 0.19 percent to 3949.14 points. The tech-heavy Nasdaq 100 rose by 0.49 percent to 11,827.43 points.
On Monday, signs of easing in the trade dispute with China and a strong banking sector had driven prices up, but on Tuesday bad news from the social media industry once again triggered a price slide in technology stocks. Overall, investors remain concerned that economic growth could slow sharply as monetary policy tightens to combat high inflation. The war in Ukraine and the corona lockdowns in China are also worsening the prospects, especially for tech stocks, which are very dependent on the economy.
Once the stock market favorites of investors, these are still “the burden of the hour,” commented portfolio manager Thomas Altmann from QC Partners. With a price slide of more than 30 percent at the top, the Nasdaq 100 is currently experiencing its biggest sell-off since the financial crisis.
Michael Hewson, market analyst at trading house CMC Markets UK, was a little more confident. The day before, it was remarkable that the Nasdaq 100 and the S&P 500 closed well above their daily lows despite everything.
For Fed minutes, which will be released during trading, Hewson will pay particular attention to the balance sheet shrinking discussion. The Fed wants to quickly reduce its balance sheet, which has swollen to around USD 9 trillion as a result of the Corona emergency programs, in order to withdraw liquidity from the market.
Among individual stocks, shares in fast-food restaurant chain Wendy’s pulled by almost ten percent. Major shareholder Trian Fund Management “checks a transaction”. That could mean a takeover, merger or other transaction, it said. Trian holds an approximately 11.8 percent stake in Wendy’s.
For Nordstrom went up by around eleven percent after a slow start. The department store and mail order chain raised its sales and earnings expectations for 2022.
Another topic on the stock exchange is the massacre at an elementary school in the state of Texas. The US President called for consequences from the recurring rampages with guns. “As a nation, we have to ask ourselves when in God’s name are we going to stand up to the gun lobby,” said Joe Biden. “We have to take action.”
But as is so often the case with similarly bad events, this time too the prices of arms manufacturers’ shares are rising. So Smith & Wesen Brands rose and Vista Outdoor
by about nine percent each. Stockbrokers justify this by saying that those who now expected a sharper pace of politics wanted to stock up on weapons in good time./la/he
ISIN US2605661048 US6311011026 US78378X1072
AXC0349 2022-05-25/19:41
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