NEW YORK (awp international) – The back and forth of the US stock markets because of the monetary policy perspectives continued on Thursday. As has been the case throughout the week, the indices fluctuated widely between gains and losses. After a peak increase of 1.8 percent, the Dow Jones Industrial was temporarily in the red again. In the end it leveled off at a neutral level. From trading it went 0.02 percent lower at 34,160.78 points.
Many a courageous investor grabbed again at the reduced level, although surprisingly high growth in the US economy in the fourth quarter was gratefully accepted. However, trade was once again bumpy. “The volatility of the stock exchanges will not go away anytime soon,” said market observer Edward Moya from broker Oanda. In the past, the masses tactically attacked setbacks. In the meantime, however, the motto is to sell again at every rally.
The broader S&P 500 fell 0.54 percent on Thursday to 4326.51 points. The technology-heavy Nasdaq 100 even lost 1.20 percent to 14,003.11 points. The number templates from Tesla and Intel were not well received.
The reactions to other quarterly figures from major US corporations were mostly negative on Thursday. Tesla shares, for example, fell 11.6 percent on the Nasdaq to their lowest level since October. In 2021, the electric car manufacturer earned more than ever before in a financial year, but the prospects for 2022 were criticized. CEO Elon Musk disappointed with the statement that no new vehicle models would be presented this year.
Investors also did not leave a good hair on Intel’s figures, the papers fell by seven percent and were by far the biggest Dow loser. The chip company disappointed investors with its profit forecast for the first quarter of 2022. Among other things, the expenses for expanding production weigh on profitability.
McDonald’s was another Dow loser by the numbers, albeit more moderately, down 0.4 percent. In terms of sales, the fast-food chain is still coming out of the Corona crisis, but here, too, profitability was seen as a mood brake. Analysts judged that rising labor and raw material costs were eating away at profits.
On the other hand, the chemical group Dow Inc. convinced with its figures from the leading index. With an increase of 5.2 percent, investors reacted very happily to a record result achieved in 2021. Higher demand and price increases fueled business.
As far as technology stocks are concerned, Microsoft stocks were unable to prevent the mood that ultimately subsided again. After the strong results that the software company presented after the trading session on Tuesday, the papers continued their positive conclusion of the day before with a plus of one percent.
The Apple titles, on the other hand, closed moderately down 0.3 percent shortly before the quarterly report. The numbers are expected from the iPhone group after the trading day on Thursday. Rod Hall of the investment bank Goldman Sachs had expressed caution a few days ago, as far as the first quarter is concerned.
Even though the Nasdaq indices turned negative, the shares of the streaming provider Netflix remained on a recovery course after a recent sharp drop in prices that had been triggered by a disappointing subscriber outlook. They moved up 7.5 percent as a favorite on the Nasdaq 100. Streaming competitor Walt Disney’s shares also recovered with them, rising 1.4 percent on the Dow.
Following the Fed’s decision from the previous day, investors are now expecting even faster interest rate hikes in the USA. The euro reacted to this with significant losses and the lowest level since mid-2020. The last price paid was 1.1145 US dollars. The European Central Bank had set the reference rate at 1.1160 (Wednesday: 1.1277) dollars. The dollar thus cost 0.8961 (0.8868) euros.
US government bonds felt a little more demand after their price slide on the previous day. The futures contract for ten-year Treasuries recently rose 0.11 percent to 127.66 points. The return on the ten-year government bonds was 1.81 percent./tih/he
— By Timo Hausdorf, dpa-AFX —
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