NEW YORK (dpa-AFX) – The US stock exchanges coped quite well with surprisingly high consumer prices on Wednesday. The most important share indices reduced their losses significantly or even turned positive.
The leading index Dow Jones Industrial (Dow Jones 30 Industrial) recently fell by 0.23 percent to 30,909.36 points. The market-wide S&P 500 went up 0.06 percent to 3820.96 points. The NASDAQ 100 technology selection index gained 0.39 percent to 11,790.62 points.
Consumer prices rose 9.1 percent year-on-year in June, more than analysts had expected. This increases the pressure on the US Federal Reserve to raise key interest rates sharply. In US bond trading, Treasury yields soared after the data. Higher interest rates make consumer credit and corporate investments more expensive.
“The June data on consumer prices have not alleviated the Fed’s inflation concerns,” wrote Johannes Mayr, chief economist at wealth manager Eyb & Wallwit. A large rate hike of 0.75 percentage points is therefore expected for the next meeting on July 27. At the same time, fears of a recession increased on the market. Because the pressure on the economy has already increased significantly and will continue to increase – driven by the considerable loss of purchasing power and the already significant tightening of financing conditions.
Looking at the individual values, the airline stocks, which were still very strong the day before, came under significant pressure. Investors reacted angrily to the fact that Delta Air Lines’ second-quarter earnings were worse than expected and expects high operating costs for the rest of the year. Because on Tuesday, American Airlines had created a good mood in the sector with robust business figures.
Now, Delta Air Lines has fallen nearly 6 percent among the weakest stocks in the S&P 500. American Airlines shares lost part of their previous day’s gains and fell by almost three percent.
Twitter (Twitter) demands from tech billionaire Elon Musk in court to implement the agreed takeover of the online service. The company filed a lawsuit in the state of Delaware. The competent court can order the completion of a takeover, which Twitter also expressly demands. The shares rose by almost eight percent./la/he
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