Equities New York: Slightly weaker – turbulent quarter comes to an end | 03/31/22

NEW YORK (awp international) – The US stock exchanges extended their previous day’s losses on Thursday. Russia’s ongoing war against Ukraine continues to weigh on investor sentiment across the Atlantic. In addition, the recent release of strategic US oil reserves is being weighed up on the market.

The Dow Jones Industrial fell around two hours before the close by 0.52 percent to 35,111.44 points. The S&P 500 fell 0.43 percent to 4582.43 points. The Nasdaq 100 fell 0.54 percent to 14,989.75 points.

With the quite moderate losses, the very volatile first quarter should end relatively quietly. After the first three months of the new year, the Dow is currently around three and a half percent in the red. After it climbed to a record level of just over 36,950 points right at the beginning of the year, inflation and tightening monetary policy measures became increasingly important. Five weeks ago, Russia then started the war against Ukraine, which pushed the most well-known Wall Street index to around 32,270 points and thus to its lowest level in a year. In the most recent recovery, however, the Dow made up for two-thirds of the setback.

Despite its recent race to catch up, the technology index Nasdaq 100 is far worse in the race with a minus of almost eight percent in the year to date. The turnaround in interest rates initiated by the US Federal Reserve prompted many investors to part with their tech darlings. But since its March low, the Nasdaq selection index has also made it more than halfway to the record of just over 16,760 points from November.

US stocks have held up relatively well in what has been a volatile year so far. However, if investment strategist Peter Oppenheimer from Goldman Sachs is right, then there would initially be little upside potential, at least on Wall Street. His target for the market-wide S&P 500 by the end of the year is 4700 points, just 100 points above the current level. He believes stocks in Europe and especially Asia are a little more capable. At the same time, Oppenheimer does not consider the recent recovery to be irrational. On the contrary, further negative real interest rates and a share valuation that lagged behind the earnings development of companies justify it.

Among the individual stocks in the Dow, the stocks of Walgreens Boots Alliance stood out, losing just over five percent at the bottom. The drugstore and pharmacy chain benefited from the sale of corona vaccinations and tests in the second quarter of the financial year and performed better than expected. However, investors reacted with disappointment to the annual forecast for earnings per share adjusted for special effects, which is expected to rise in the low single digits.

AMD and Baidu, among others, attracted interest on the Nasdaq. The British investment bank Barclays canceled its recommendation for the shares of the processor manufacturer AMD and lowered the price target to 115 US dollars. Analyst Blayne Curtis wrote that while Advanced Micro Devices is likely to steal further market share from its competitor Intel in the coming years, growth is likely to suffer from the situation in many end markets.

AMD then went down by almost eight percent. Baidu, which was down 2.6 percent the day before, fell another 7 percent. On Wednesday, the US Securities and Exchange Commission (SEC) put the Chinese search engine operator on the list of companies at risk of being delisted

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