NEW YORK (awp international) – A sell-off in tech stocks has further dampened sentiment on US stock markets. Standard values also had to lose their feathers on Monday. According to traders, fears that the fight against inflation and China’s strict measures to contain the corona pandemic will weigh on economic growth caused pressure.
The leading US index Dow Jones Industrial lost 1.99 percent to 32,245.70 points and was thus at the level of March last year. The market-wide S&P 500 fell 3.20 percent to 3991.24 points. The tech-heavy Nasdaq 100 tumbled 3.98 percent to 12,187.72 points after hitting its lowest level since November 2020 shortly before the close.
A wave of risk aversion swept global markets after Friday’s US jobs data left little room for the US Federal Reserve to adopt a more moderate monetary policy course, traders said, citing the threat of further interest rate hikes. The short-term outlook for equities “is still chaotic and there could be more downside as markets worry about a significant economic slowdown or ‘hard landing’ and aggressive rate hikes,” commented economist Diana Mousina of asset manager AMP Investments.
Comments by Chinese Prime Minister Li Keqiang over the weekend are also likely to have dampened market sentiment. The politician had warned that the country’s employment situation had “seriously” deteriorated because of the massive Covid restrictions.
Among the individual stocks, the recent downward trend in shares of Boeing has intensified, although Lufthansa is strengthening its long-haul routes with new aircraft from the US manufacturer. Boeing shareholders had to cope with a minus of more than ten percent, so the papers were the bottom of the Dow.
However, Biontech’s depository receipts listed in New York rose by a good three percent. The corona vaccine manufacturer again significantly increased sales and profits in the first quarter.
The papers of Philip Morris International also provided a small ray of hope and increased by around one percent. The tobacco company is interested in taking over the smaller European competitor Swedish Match.
Coty shares, on the other hand, lost initial gains in the gloomy environment and ultimately fell by more than seven percent. The cosmetics group had increased its annual target for adjusted earnings per share.
The shares of the electric car startup Rivian, which was once hyped on the stock exchange, had slipped to a record low and ended up falling by almost 21 percent. According to a report, the carmaker Ford sold part of its Rivian shares after the standstill period of the existing shareholders after the IPO in November expired on Sunday.
The euro was last listed at 1.0560 US dollars. The European Central Bank (ECB) set the reference rate at 1.0559 (Friday: 1.0570) dollars. The dollar thus cost 0.9471 (0.9461) euros. On the bond market, the futures contract for ten-year Treasuries (T-Note Future) rose by 0.58 percent to 118.48 points in view of the significant losses on the US stock exchanges. The yield on ten-year government bonds fell to 3 percent./la/men
— By Lutz Alexander, dpa-AFX —
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