NEW YORK (dpa-AFX) – After initial price gains, the US stock exchanges came under pressure on Tuesday. Traders justified the losses with renewed fears of a recession. In particular, the technology stocks, which are considered to be high-growth, went downhill noticeably. After the starting bell, the leading index Dow had risen to its highest level in two and a half weeks, but then stock sales began. Most recently, the Dow posted a loss of around one percent to 31,136 points.
Data on US consumer confidence was released shortly after the starting bell. Their mood clouded over more than expected in June and was as depressed as it had been at the beginning of 2021. Consumer spending is by far the most important pillar of the entire economy in the USA. As a result, prices fell steadily, first and foremost on the Nasdaq stock market, which is dominated by technology stocks. The Nasdaq 100 slipped 2.3 percent to 11,729 points. The market-wide S&P 500 lost 1.4 percent to 3844 points.
“A recession is now clearly a possibility,” wrote economist Jeremy Schwartz of Bank Credit Suisse. Growth will reflect higher borrowing costs and deteriorating sentiment, particularly in cyclical sectors. It is fitting that consumer stocks and IT stocks were the biggest losers on Tuesday. Schwartz predicted that consumers will tighten their belts on household goods and housing while companies will curb investment.
Bucking the weak trend, shares in the hotel and casino chains Wynn Resorts and Las Vegas Sands posted strong price gains of five and six percent. Both companies are active in the Chinese gaming paradise of Macau and could benefit from the easing of corona-related restrictions in China. Boeing shares gained a good one percent, China is an important sales market for the aircraft manufacturer.
Banks also held up quite well in the weak overall market. After passing the US Federal Reserve’s stress test, the first major US financial institutions have presented new plans for paying out capital to their shareholders. That’s what Morgan Stanley wants buy back up to $20 billion of its own stock and increase the dividend in the coming years. Morgan Stanley rose by almost two percent. The papers of the Bank of America also posted in their wake from JPMorgan and Goldman Sachs moderate gains.
Biggest losers in the Dow were Nike with minus 5.3 percent. Adidas’ rival made significantly less profit in the fourth fiscal quarter due to the Covid lockdowns in China. The quarter was mixed, judged analyst Matthew Boss from JPMorgan./bek/men
ISIN US2605661048 US6311011026 US78378X1072
AXC0361 2022-06-28/19:46
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