NEW YORK (dpa-AFX) – The US stock markets plummeted on Tuesday after a long weekend. Recession concerns dominated the mood. In the course of trading, however, the technology-heavy Nasdaq indices recovered significantly and even increased around two hours before the close of trading. In the past week, however, they had also lost significantly more than the standard values.
The leading index Dow Jones Industrial (Dow Jones 30 Industrial) recently fell by 1.43 percent to 30,652.56 points, thus expanding its slightly more than one percent loss from the past week. The market-wide S&P 500 reduced its minus in trading on Tuesday to 0.95 percent at 3789.02 points. The Nasdaq Selection Index 100 (NASDAQ 100), on the other hand, rose 0.60 percent to 11,654.82 points. However, it had lost a little more than four percent in the past week.
On the one hand, there was a sense of confidence in the market as the US and China are talking to each other about possibly some of the once under Donald Trump withdraw the trade tariffs that have been introduced. On the other hand, however, recession worries weighed heavily, especially since it was said on the market that a reduction in tariffs on imports of Chinese goods could do little to cool down the high inflation.
The surprisingly good incoming orders data from US industry for the month of May also received relatively little attention. In view of the prevailing supply chain problems and the resulting backlog of orders, such data had become secondary, it was also said.
The fact that the euro fell to a 20-year low against the US dollar also contributed to the market turmoil. The common currency has been burdened for some time by the sometimes very gloomy mood on the international financial markets. In contrast, the dollar benefits because many investors value it not only as a safe form of investment, but also as a very liquid form of investment due to the size of the US financial market. The US Federal Reserve’s aggressive pace of rate hikes is also driving the dollar.
The US economic prospects, however, are now assessed by JPMorgan as poor as in Western Europe. The economists at the US bank therefore cut their estimates significantly. For the question of whether weak growth will ultimately turn into a recession, the reaction of companies is decisive, they wrote.
Among the individual values, the Dow UnitedHealth lost 4.4 percent as the weakest share. Nike, meanwhile, rose 2.0 percent at the top of the Dow. However, they only fell to their lowest level in around two years on Friday.
The papers of the corona vaccine manufacturers were in positive territory – even if there was rather negative news about Biontech (BioNTech (ADRs)). The Tubingen Biotechcompany CureVac filed a lawsuit against Biontech and two subsidiaries in Germany. The company speaks of patent infringement. It is about the vaccine Comirnaty from Biontech/Pfizer (Germany/USA). Curevac rose 1.1 percent, Biontech 0.7 percent, while shares in Biontech pharmaceutical partner Pfizer fell 2.5 percent. In the NASDAQ 100, the shares of the competitor Moderna also increased by 1.9 percent
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