NEW YORK (awp international) – Before the Fed’s decision on interest rates, nervousness is growing on the US stock market. US stocks quickly turned negative on Tuesday following solid US industry and job market data. Concerns have grown again that the US Federal Reserve will continue its tough monetary policy course with large interest rate hikes, after recently hoped that the pace of hikes would be less rapid.
After the unusually strong October with a nearly 14% rise in price, the Dow Jones Industrial lost 0.24% to 32,653.20 points at the close on Tuesday. The market-wide S&P 500 fell 0.41% to 3856.10 points.
In view of the renewed fear of interest rates, the Nasdaq 100, which is heavily stocked with tech stocks, slipped even further than standard values with -1.02 percent to 11,288.95 points. Heavyweights like Apple and Microsoft lost 1.8 and 1.7 percent, respectively, and Alphabet more than four percent. Amazon fell five and a half percent, bringing the online retailer’s stock market value below $ 1 trillion.
The Fed will announce its interest rate decision on Wednesday. Market participants are firmly predicting another sharp hike in interest rates of 0.75 percentage points to combat high inflation. However, investors will pay close attention to statements made by currency regulators about the future course of monetary policy, with the question of whether the Fed will continue to raise interest rates quickly and significantly in the future or – much to the delight of equity investors. – rather slow down a bit.
Rumors of China’s gradual exit from zero-Covid policy initially gave indices a boost at the start of trading on Tuesday and ensured a friendly start in November. Shares of technology companies had previously risen on the China and Hong Kong stock exchanges. In New York, this had a positive effect on the depository receipts (ADRs) of Chinese companies such as those of Internet trading groups Alibaba and JD.com and search engine operator Baidu, which in some cases increased by more than three and a half percent. cases.
Uber jumped 12%. Shares in the US ride-hailing service provider benefited from better-than-expected quarterly sales. The company also cut losses. In the wake of Uber, competitor Lyft’s stock gained 3.5%.
The shares of pharmaceutical manufacturers Pfizer and Eli Lilly have taken different directions. Despite the strong US dollar, Pfizer had raised its annual targets for the figures, which gave the shares a 3.1% increase. Eli Lilly, on the other hand, cut both sales and profit targets for the current year due to the strength of the dollar and shares lost 2.6%.
Attention also focused on the pharmaceutical and consumer goods group Johnson & Johnson (J&J) with a proposed acquisition. Desire’s target is Abiomed heart pump manufacturer. The offering, excluding milestone payments, is $ 380 per share in cash for a total of $ 16.6 billion. While Abiomed jumped around 50%, J&J fell 0.5%.
The euro came under pressure from solid US economic data, losing previous gains against the US dollar. After the US market closed, the common currency cost $ 0.9876. The European Central Bank (ECB) had set the reference rate at 0.9947 (Monday: 0.9914) dollars, so the dollar cost 1.0053 (1.0087) euros.
Prices have also reversed on the bond market. The ten-year card futures contract (T-Note Future) recently fell 0.03% to 110.56 points. The ten-year government bond yield was 4.05 percent / ajx / h
— By Achim Jüngling, dpa-AFX —
