NEW YORK (awp international) – Concerns about the economy and rising yields on the bond markets weighed on the US stock market at the start of the week. The US leading index Dow Jones Industrial fell by 1.19 percent to 34,308.08 points at the close of trading on Monday. The broader S&P 500 was down 1.69 percent to 4412.53 points. The tech-heavy Nasdaq 100 fell 2.35 percent to 13,990.21 points. Tech stocks are particularly suffering from rising bond yields
After the US Federal Reserve signaled drastic interest rate hikes and a reduction in total assets last week in order to dampen price pressure, the challenges for the stock exchanges have increased again.
Market sentiment continues to be weighed down by the massive negative impact of the war in Ukraine and the prospect of an economic slowdown. In addition, the Covid-related lockdowns in China threaten to exacerbate global supply chain problems and thus further fuel inflation risks.
The strict corona restrictions in the Middle Kingdom led to a significant drop in oil prices on Monday. As the number of infections rose, the lockdowns threatened to last even longer, said commodity expert Barbara Lambrecht from Commerzbank. Most recently, restrictions in the metropolis of Shanghai had caused a stir. Accordingly, oil stocks on Wall Street were in poor shape: Chevron fell 2.6 percent and ExxonMobil fell 3.4 percent.
Twitter’s shares recouped initial losses and rose 1.7 percent, although tech billionaire Elon Musk will now not take an official post with the short message service. The appointment was officially supposed to come into effect on April 9, “but Elon announced the same morning that he would no longer join the board of directors,” wrote Twitter boss Parag Agrawal on Monday night. At the beginning of April it was announced that Musk had become Twitter’s largest shareholder with a stake of 9.2 percent.
The euro closed at $1.0883 on Wall Street. The European Central Bank set the reference rate at 1.0900 (Friday: 1.0861) dollars. The dollar thus cost 0.9174 (0.9207) euros.
Government bonds remained under pressure on the US bond market. The futures contract for trend-setting ten-year Treasuries (T-Note future) fell 0.34 percent to 119.27 points. The yield on ten-year government bonds was 2.8 percent. This is the highest level since early 2019./he
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