NEW YORK (dpa-AFX) – After the severe losses at the start of the week, investors on the US stock exchanges took a wait-and-see attitude on Tuesday. Because in view of persistently high inflation, the US Federal Reserve could tighten the interest rate screw on Wednesday. At the beginning of the week, high inflation, rising interest rates and the resulting fears of recession had already weighed heavily on prices.
The leading index Dow Jones Industrial (Dow Jones 30 Industrial) recently fell by 0.75 percent to 30,289 points. It fell to another low since early last year. In the past four trading days, the loss has added up to around eight percent.
Investors’ interest rate concerns are underpinned by new data on inflation. For example, producer prices in May did not rise as much as feared over the year. With an increase of 10.8 percent, however, inflation is still extraordinarily high. A rate hike by the Fed by 0.50 or 0.75 percentage points is viewed as possible on the financial markets. Goldman Sachs expert Jan Hatzius sees another in July rate hike follow by 0.75 percentage points.
The market-wide S&P 500 fell by 0.53 percent to 3730 points. The technology-heavy selection index NASDAQ 100 held up slightly better with an increase of 0.08 percent to 11,297 points.
Oracle’s shares recorded high price gains. According to the results of the final quarter of the financial year, it went up by almost ten percent. JPMorgan analyst Mark Murphy spoke of surprisingly solid growth at the highest pace since 2011. The software group’s outlook for the 2023 fiscal year is strong, even if a recession appears to be in the offing.
FedEx’s shares surged even more, gaining 13 percent. The shareholders of the US logistics group can look forward to a significantly higher dividend. The quarterly distribution is to be increased by more than half.
Twitter’s shares rose 2 percent. The tech billionaire reportedly wants to Elon Musk on Thursday in an online round with the employees of the short message service, for which he submitted a takeover bid. Recently he had increased his efforts to keep a retreat open. The point of contention is the number of spam and fake Twitter accounts.
Boeing shares led the Dow index with a premium of 1.6 percent. The aircraft manufacturer received fewer orders in May than in April. However, the share price had already collapsed by more than 40 percent in this stock market year./bek/he
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