NEW YORK (dpa-AFX) – On Wall Street, the Dow Jones Industrial (Dow Jones 30 Industrial) expanded its recent losses on Friday. Fears of inflation remained the dominant theme, even if the situation on the bond market has calmed down for the time being. A sharp rise in yields had caused turbulence on the capital markets there on Thursday.
The Dow fell 1.50 percent to 30,932.37 points and thus also suffered from significant losses in the shares of the software company Salesforce. It was not until Wednesday that the stock market barometer was open after Federal Reserve Chairman Jerome Powell tried to calm down Monetary policy reached a record high. On a weekly basis, this results in a decrease of 1.78 percent. The balance for February shows an increase of 3.2 percent.
The market-wide S&P 500 gave way on Friday by 0.48 percent to 3811.15 points. The technology-heavy NASDAQ 100, on the other hand, recovered somewhat from its share price fall on Thursday and rose 0.63 percent to 12,909.44 points.
Despite the recent losses, the markets are currently far from being in free fall, wrote analyst Craig Erlam of broker Oanda. The yields on US bonds would remain at a very low level compared to their historical values. Rising interest rates tend to cause concern because they make bonds appear in a better light compared to stocks.
Recently, the yields have soared for fear of a tighter monetary policy to ward off inflationary tendencies. Previously, the planned 1.9 trillion stimulus package by the US government triggered growth and inflation expectations. Although prominent economists are warning of the economy overheating, senior central bankers such as US Federal Reserve Chairman Jerome Powell have so far been relaxed about inflation risks.
At the Dow end, Salesforce shares plummeted more than six percent. At first glance, the software company is surprisingly optimistic about the future, thanks to an apparently increasing interest from customers. However, the expert Mark Moerdler from the analysis company Bernstein Research was concerned about declining revenue growth and the sustainability of margins. The company’s outlook also factored in acquisitions. Excluding this, the Group’s growth targets would be below the longer-term horizon.
Investors, on the other hand, took hold of the papers of the apartment broker Airbnb, which despite a mega loss in the past year apparently comes through the crisis better than expected. After the severe slump at the beginning of the pandemic, business has recently recovered significantly. The share certificates soared by a good 13 percent.
The ailing video game retailer GameStop remained in view of the violent price capers of recent times. On Friday, the papers that had become the plaything of speculators were more than six percent in the red.
The euro recently suffered from the strong US dollar and was quoted at 1.2066 dollars. The European Central Bank (ECB) had set the reference rate at 1.2121 (Thursday: 1.2225) dollars. The dollar cost 0.8250 (0.8180) euros.
The futures contract for ten-year Treasuries (T-Note-Future) rose by 0.5 percent to 134.22 points. The yield on the ten-year bond fell to 1.40 percent./la/he
— By Lutz Alexander, dpa-AFX —
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