NEW YORK (awp international) – The New York stock exchange initially weakened slightly after Friday’s latest record-breaking session. This means that the euphoria of the previous day following the US Federal Reserve’s big interest rate cut has noticeably subsided. In addition, the limited annual targets of the American logistics group Fedex weighed on the sentiment.
The main Dow Jones Industrial Average fell 0.10 percent to 41,984.50 points in early trade. The market-wide S&P 500 fell 0.15 percent to 5,704.32 points. Both indices had recently set new records – the Dow even set new records four days in a row.
The technology-heavy Nasdaq 100 lost 0.11 percent to 19,818.94 points on Friday. He is still slightly behind his schedule from July. For the week, the Dow and Nasdaq 100 are heading for price gains of 1.4 and 1.6 percent respectively.
“Greed is gradually increasing in the most watched market segments and there is a slow risk of overheating, so the air is getting thinner,” said the experts at Index Radar. In principle, the latest price break confirms the trend and should therefore be seen as positive. The S&P 500 in particular may have “unraveled a very promising upward price pattern”.
The experts at the Swiss bank UBS still see upside potential: “In the past, stocks have performed well during periods of interest rate cuts by the Fed, while at the same time continued the US economy is growing. ” The markets seemed to be pricing in this position – a major reversal after the economic worries at the start of August. At the time, weak US jobs data raised fears that the Fed may have waited too long to turn interest rates.
Fedex lowered the mood before the weekend. Rival DHL cut both its sales and profit forecast for this financial year after a disappointing quarter. Fedex was particularly affected by declining demand for express services in the US. The strong stocks recently fell 14.6 percent. Shares of domestic rival UPS fell 3.6 percent.
Shares of construction company Lennar lost 4.8 percent despite a surprising profit improvement in the last quarter. Apparently, several investors cashed in on the price gains after the latest hunt.
Shares of Dow leader Nike, on the other hand, jumped 7.5 percent. The sporting goods giant is replacing its boss. Company veteran Elliott Hill is returning to Nike and is expected to take the helm in mid-October. Confidence in a turnaround with steady growth will increase with Hill’s hiring, wrote Deutsche Bank’s Krisztina Katai. UBS analyst Jay Sole, however, warned that the short-term positive trend may not last. There is no quick fix to the default situation./gl/me
2024-09-20 13:42:15
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