NEW YORK (dpa-AFX) – The US stock exchanges weakened on Tuesday after a very strong start to the week. Technology stocks fell particularly sharply. China’s warnings of valuation bubbles on the foreign capital markets probably also depressed sentiment somewhat.
The world’s most famous index, the Dow Jones Industrial, which tended largely without direction in early trading, ultimately closed with minus 0.46 percent to 31 391.52 points, just above its recently reached low. With that he lost a small part of his previous day’s profits. The market-wide S&P 500 lost 0.81 percent to 3870.29 points. The technology-heavy Nasdaq 100 lost 1.68 percent to 13 059.95 points.
According to Guo Shuqing, who heads the China Banking and Insurance Regulatory Commission, the high prices on Wall Street and the European financial markets point in a different direction than the real economy. This dampened the good mood at the beginning of the week, commented portfolio manager Thomas Altmann from QC Partners. “At the same time, the attention of the stock exchange traders is being drawn more to the valuations of the stock markets. With an expected price / earnings ratio (P / E) of 23 and a historical P / E of 32, the US benchmark index S&P 500 is valued significantly more expensively than on average in its history . So the warning from China does not come out of nowhere, “he summed up.
The fact that the losses were limited despite everything is likely due to the growing hope for the nearly two trillion US dollar aid program of the new US President Joe Biden. After it has already received approval in the democratically dominated House of Representatives, the Senate is now to discuss it this week, as the Democratic majority leader Chuck Schumer said. In addition, the yield on trend-setting ten-year government bonds did not rise any further, but rather fell to 1.41 percent. Last week, the effective interest rate had risen to 1.55 percent, its highest level in a year./ck/he
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