NEW YORK (dpa-AFX) – The recent recovery on Wall Street is likely to falter on Wednesday. Around three quarters of an hour before trading began, the broker IG appraised the leading index Dow Jones Industrial 0.56 percent lower at 32,469 points. Market traders justified the clouded-down mood with the renewed concern that the US Federal Reserve could slow down the economy if it was too tight.
Fed Chair Jerome Powell recently said the central bank would “not hesitate” to tighten monetary policy beyond neutral levels in a bid to curb high inflation as interest rates rise. However, should interest rates rise so sharply that consumer demand for credit and business investment activities flag, the economy could slide into recession.
The US construction industry developed rather weakly in April. The number of new houses started and the number of building permits declined.
Target shocked under the individual values its shareholders: to Walmart the day before, this retailer also had to cut its profit forecast. Target referred to the significant increase in costs in the first quarter, which means that the company is likely to be less profitable this year than initially targeted. Shares fell by around a quarter in premarket US trading.
The hardware store group Lowe’s meanwhile disappointed with its sales development on a like-for-like basis, after the competitor Home Depot the day before had caused a positive exclamation mark. The bad weather hit the office at Lowe’s. The papers lost more than four percent before the market./la/jha/
ISIN US2605661048 US6311011026 US78378X1072
AXC0251 2022-05-18/14:59
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