NEW YORK (dpa-AFX) – After the small setback from the previous day, the US stock exchanges were unable to build on the recovery at the opening of trading on Wednesday. Mixed economic data was apparently not enough to encourage investors to make further purchases. In the further course of the week, data on the labor market will also be available, which could provide more clarity with regard to further economic development.
Der Dow Jones Industrial quickly gave up its initial gains and slipped into the red – most recently the leading index lost 0.78 percent to 32,733.38 points. The broader S&P 500 fared similarly , which fell by 0.79 percent to 4099.41 points. The tech-heavy Nasdaq 100
held up a little better with a minus of 0.38 percent to 12,593.51 points.
According to the purchasing managers’ index of the Institute for Supply Management (ISM), the mood in US industry improved surprisingly in May. Economists, on the other hand, had expected sentiment to deteriorate. In contrast, the increase in construction spending in April was lower than expected.
On Thursday, the report by the labor market service provider ADP on the development of employment in the private sector in May and the weekly initial jobless claims are on the agenda. Both sets of data are considered by many investors to be an important indicator for the US government’s monthly employment report, which is due out on Friday.
The day before, the oil prices, which had risen sharply at times due to new EU sanctions, and the record high inflation in the euro zone had also weighed on Wall Street courses. In addition to the discussions about a possibly faster tightening of interest rates by the ECB, investors suddenly had doubts about the further course of action of the US Federal Reserve.
Statements by the Fed last week were seen as evidence that interest rates in the USA were only being raised gradually. Broker Oanda’s Jeffrey Halley spoke of market sentiment swinging, with bargain hunters increasingly desperate to find a cyclical bottom.
The Fed has already hiked interest rates twice this year. This Wednesday it will also begin to melt its balance sheet, which was inflated by the purchase of securities, which were carried out to support the economy during the pandemic.
However, the strategists at Citigroup are now assuming that the headwind on the stock markets will not be over after the first difficult five months. They see the risk of falling profit forecasts by companies as a further problem for unsettled investors.
Company news received mixed reviews midweek. The software company Salesforce
delighted with a higher earnings forecast. That the SAP
-Competitor now promises lower annual sales did not bother investors, as the price jump of almost 13 percent showed.
At the computer manufacturer HP Inc Inc, the shareholders could look forward to a price increase of around two percent after the quarterly figures.
Meanwhile, the airline Delta Air Lines calculates
for the second quarter with sales at the level before the corona pandemic. The shares fluctuated violently – most recently they lost over four percent.
Shares of S&P Global lost almost three percent. The financial services group has put its financial forecast on hold due to deteriorating macroeconomic conditions – new targets are not expected to be announced until the second quarter figures. The disappointed investors also punished competitor Moody’s with a price drop of almost four percent./gl
ISIN US2605661048 US6311011026 US78378X1072
AXC0325 2022-06-01/17:29
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