NEW YORK (dpa-AFX) – On Wall Street it looks like less selling pressure on Wednesday after the previous day’s losses. The Dow Jones Industrial was seen half an hour before the start of trading by broker IG 0.1 percent lower at 35 069 points. On Tuesday, the price barometer of the standard values had already suffered from growth concerns at a discount of 0.8 percent – unlike the tech values on the Nasdaq.
The market now said that analysts are currently more skeptical of American stocks after the record run of the US indices, which overshadows the international stock exchanges. The experts at Morgan Stanley therefore downgraded US stocks to “Underweight”. Under the impression of the ongoing pandemic and the tensions surrounding inflation, bond yields and monetary policy, I pointed out that the risks are currently very large again with regard to short-term growth.
After all, trading on the Nasdaq had come to a robust end the day before. “Anything that is not necessarily dependent on cyclical growth is doing pretty well these days,” said market watcher Neil Wilson of Markets.com. He referred to the shares of the video streaming provider Netflix, which reached record heights the day before, or the electric car pioneer Tesla. Its shares are heading towards their high from April with a plus of 1.3 percent. However, the technology-heavy Nasdaq 100 index was rated on par with the Dow just in the red on Wednesday.
After the recent surge in bond yields to a high since mid-July, they will fall again on Wednesday. This could put the attractiveness of banks as an investment to the test. Before the trading session, however, the shares of the Dow-listed financial houses Goldman Sachs and JPMorgan moved very little. In theory, higher market interest rates are considered beneficial for banks’ day-to-day business, including with loans.
Paypal meanwhile made a name for itself with a reported acquisition: The payment service provider wants to swallow the Japanese provider Paidy for 2.7 billion US dollars. This was initially well received by investors, with the price gaining 1.6 percent before the IPO.
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