NEW YORK (awp international) – Growth concerns continue to have a firm grip on US equity markets. Tech indices extended their recent losses on Tuesday, while the Dow Jones Industrial recently stabilized after a slow start. “The stressful subject areas are diverse,” said Essen National Bank analyst Frank Wohlgemuth. The solutions are very difficult, if at all, to find.
The leading Dow index offset slight losses from early trading and was last quoted 0.16% up at 29,248.59 points. The market-wide S&P 500 fell 0.58% to 3591.61 points. This stock market barometer had meanwhile slipped to its lowest level since November 2020. The Nasdaq 100 technology index lost 1.00% to 10,817.36 points.
Wohlgemuth believes a break in the uptrend is unlikely for the time being, provided there are no signs that the sharp hikes in interest rates will come to an end. In this context, we look forward to what will be published in the minutes of the meeting of the US Federal Reserve Board on Wednesday. Furthermore, the latest inflation data in the US is already casting its shadows, which is expected to be released on Thursday. Fighting high inflation is the Fed’s main concern. In return, it is willing to accept the high economic damage caused by rising costs for loans and financing.
On the stock market, Uber and Lyft were among the biggest losers, by ten and twelve percent respectively. Travel agent stock certificates were affected by the US Department of Labor’s proposal to classify their independent contractors as employees.
Shares of Zscaler fell nearly 7%. Analysts rated the unexpected resignation of company chief Amit Sinha as bad for the security software maker.
Shares of US-listed Chinese technology companies have also come under pressure. Those from search engine Baidu and online retailer Alibaba each lost five percent. Weak tourism data during non-business Golden Week in early October, rising Covid cases, and new U.S. restrictions on chip technology exports weighed on sentiment. Furthermore, investors are currently eagerly awaiting the direction the government will take at the next Communist Party National Congress.
Meanwhile, Amgen’s stock rose nearly 7% at the top of the Dow. Experts from analyst Matthew Harrison of US bank Morgan Stanley see the biotech group’s stocks as a defensive investment and, with new products, promising.
Among small caps, shares of Dice Therapeutics stood out with a 61% jump in price. The company announced that psoriasis drug DC-806 would be further developed after positive interim data. These would have shown good tolerability and an excellent safety profile
