“The market seemed to go into this weekend thinking the talks would lead to a framework for an agreement… but what you see now is that the Republicans are saying, no, this is not acceptable,” explained an analyst from the US. firm LPL Financial. Without a political agreement, the United States would run out of money around June 1. This could cause major financial unrest worldwide.
The Dow Jones index entered the weekend with a minus of 0.3 percent at 33,426.63 points. The broad S&P 500 fell 0.1 percent to 4191.98 points and tech indicator Nasdaq lost 0.2 percent to 12,657.90 points. This kept the exchange rate losses limited. Investors also processed statements by Chairman Jerome Powell of the Federal Reserve, the American central bank. He hinted that interest rates in the United States may not be raised further when the interest rate decision is made next month. That would be a boost for investors, because the continuing rise in interest rates is unfavorable for the valuation of shares.
Foot Locker
Foot Locker went down hard in New York. The American sports shoe chain lost more than a quarter of its stock market value. Foot Locker, which also has several dozen stores in the Netherlands, posted less turnover and profit last quarter than analysts and investors had expected. The company itself spoke of a clear weakening of sales due to the worsening economic conditions and also lowered its profit forecast for the full year. The American sportswear manufacturers Nike and Under Armor also went down and lost more than 3 and more than 4 percent.
Netflix also dropped almost 2 percent. The streaming service was worth more than 9 percent more a day earlier. This price jump followed the news that Netflix, with its cheaper subscription, in which people are also presented with advertisements, has already attracted about 5 million users six months after its launch.
2023-05-19 20:43:40
#Wall #Street #gloomy #due #debt #ceiling #talks
