NEW YORK (awp international) – After the significant slide in prices before the weekend, no recovery can be canceled on Monday on the US stock exchanges for the time being. At times it looked like a positive opening, but a few hours before the start, the indications turned back into the red. The general mood among investors is still characterized by caution before the interest rate decision by the US Federal Reserve is on the agenda for Wednesday.
While broker IG estimated the Dow Jones Industrial at 32,962 points almost at Friday’s level one hour before the stock market opened, the technology-heavy Nasdaq 100 index lost 0.43 percent to 12,799 points. The Dow, which fell 2.8 percent on Friday, is currently at a low since mid-March. The Nasdaq index fell 4.5 percent on Friday to its lowest level in more than a year on disappointing earnings reports from Amazon and Apple.
When the Fed announces its monetary policy decisions on Wednesday, investors are currently expecting a 50 basis point hike in the key interest rate. “But beyond that, investors are waiting for new insights into the additional steps to be taken to combat inflation,” say the Metzler experts, looking beyond the concrete resolutions.
Economically, the corona lockdowns in China and the ongoing war in Ukraine remain major international concerns for investors. This is one of the reasons why fresh economic data from the USA should be viewed particularly critically. After the start of the stock exchange, the ISM purchasing managers’ index for the manufacturing sector will be published there, a much-noticed leading indicator. In addition, figures on construction investments should also be considered.
The shares of the two tech giants Amazon and Apple do not come to rest before the market. Above all, the Amazon titles continued their price slump of 14 percent on Friday with a discount of 1.7 percent. At Apple, the pre-market minus after Friday’s loss of 3.7 percent was 0.8 percent. The iPhone manufacturer has announced that the EU Commission is accusing it of violating competition regulations when using the Apple Pay payment solution.
Among the Dow stocks, Chevron was among the losers premarket with 0.9 percent, while the shares of the competitor ExxonMobil lost 1.3 percent. The moves were once again seen in the context of oil prices, which significantly extended initial losses on Monday. According to Federal Economics Minister Robert Habeck, there is still no agreement within the EU on an embargo on Russian oil.
A particularly clear loser before the market were the Moody’s shares with a price slide of 6.8 percent. The financial rating provider missed expectations with its profit in the first quarter and reduced the annual outlook. Things looked better for Activision Blizzard investors, with an increase of 1.6 percent. It was pointed out here that legendary investor Warren Buffett now holds 10 percent of the computer games group./tih/mis
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