NEW YORK (awp international) – Two days before the next key rate hike by the US Federal Reserve, the US stock market should start trading in a friendly manner. The bear market rally currently seen by some experts, i.e. rising prices in the midst of an overall downward market environment, should continue on Monday for the time being, it was said from the trade.
The broker IG assessed the Dow Jones Industrial for three quarters of an hour before the start of trading, up 0.5 percent to 32,050 points. In the course of the past week, the world’s best-known stock index had recovered by almost two percent. The Nasdaq 100 is expected to be 0.4 percent higher at 12,441 points on Monday after rising 3.5 percent over the past week.
Expecting another Fed rate hike of at least 75 basis points this Wednesday, investors are initially turning their attention to the big US tech companies. Alphabet and Microsoft will present figures on Tuesday, Meta on Wednesday and then Amazon, Apple and Intel on Thursday.
“We should therefore look forward to a relatively quiet start to the week,” advises market analyst Craig Erlam from broker Oanda. Because: In the next few days things will “get busy” in view of all these company reports that have great potential to move the markets, and also in view of the interest rate decision. “By the end of the week we might have a better idea of whether the US is headed for a recession as Europe seems to be.”
At the start of the week, many investors will initially look towards the Telekom subsidiary T-Mobile US. This wants to settle user complaints after a major hacker attack with a payment of half a billion dollars. 350 million dollars (343 million euros) are to flow into a fund for suing US customers. A further 150 million dollars are to be spent this year and next to improve cyber security. The paper went against the market trend by 0.6 percent before the market.
After the market close, the Dutch chip manufacturer NXP Semiconductors, which is listed on the Nasdaq 100, will also report on its past quarter of the year
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