(message supplemented by individual values)
NEW YORK (awp international) – Investors in the US stock market appear to have lost hope of a year-end rally. Standard stocks like tech stocks fell significantly on Wednesday. In view of the rapid increase in Covid infections in China, investors fear that the virus will spread again around the world with possible new variants, after China recently said goodbye to the zero Covid policy and decided to further ease the measures of the coronavirus. From January 5, travelers from China will again have to show a negative corona test to enter the USA.
The Dow Jones Industrial lost 1.10% to 32,875.71 points mid-week, meaning the main index fell below the 50-day line, which is considered an indicator of the medium-term trend. The market-wide S&P 500 fell 1.20% to 3783.22 points. The tech-heavy Nasdaq 100 was also down again, down 1.32% to 10,679.35 points. All three indices are currently showing a sharply negative annual balance, with interest-sensitive tech stocks in particular falling under the wheels in 2022.
The day before, market participants were still focused on easing the corona virus in China and thus hoped for an improvement in the economic outlook. However, this hasn’t really helped the stock market, because an economic recovery also means possibly further high inflation and still high interest rates – and these particularly hit the stocks of technology companies, whose investments in growth therefore become more expensive. . Rising bond market yields are a major reason for equity market weakness this year in light of the US Federal Reserve’s interest rate reversal – and they were once again a killjoy midweek.
Among the individual values, the electric car manufacturer Tesla continued to be the focus. After their recent decline, stocks have at times had a hard time stabilising. In the end, however, they were significantly higher at 3.3%. Since the beginning of the year, the price is down 68%, making Tesla one of the biggest losers on the Nasdaq 100 in 2022.
At its lowest price level since mid-2021, shares of Apple iPhone group fell 3.1% again on Wednesday, moving it to last place on the Dow. JPMorgan gained 0.6% to lead the major index. The daily winner and loser in the Dow are thus examples of the interest rate turnaround, which is shaping the stock market this year, from which banks are benefiting while tech stocks are suffering.
Southwest Airlines extended the previous day’s losses with the lowest level since mid-October and less than 5.2%. The airline had upset customers with a large number of flight cancellations and delays over the Christmas weekend. The US Department of Transportation has announced an investigation. While other airlines are also suffering from harsh winter weather across much of the United States, they aren’t reporting as many cancellations as Southwest. According to the company, the problems are likely to continue for now. Aviation experts and analysts complain about the lack of investment in technology.
The euro was trading at $1.0610 after the close in New York. The European Central Bank (ECB) had set the key rate at 1.0640 (Tuesday: 1.0624) dollars, the dollar therefore cost 0.9399 (0.9413) euros.
In the US bond market, the 10-year bond futures (T-Note Future) contract fell 0.10% to 112.22 points. In return, the 10-year government bond yield rose to 3.88%/ajx/he
— By Achim Jüngling, dpa-AFX —
