indexes in this article
NEW YORK (dpa-AFX) – The US stock markets turned positive on Tuesday after a weak start. Until the close of trading, they gradually even increased their profits, although investors are still nervous.
The mood fluctuates between optimism and pessimism, so that a clear trend on the stock markets is still not discernible. Rather, the overarching picture currently shows a sideways movement. The risks to economic growth resulting from the central banks’ efforts to curb high inflation are still being weighed up.
The Dow Jones Industrial (Dow Jones 30 Industrial) ended the day up 0.80 percent to 33,180.14 points. The best-known Wall Street index thus closed just below the daily high it had just reached. The market-wide S&P 500 went up 0.95 percent to 4160.68 points. The tech-heavy NASDAQ 100 rose 0.89 percent to 12,711.68 points.
In the US, there is particular uncertainty about the extent to which further tightening of the monetary policy by the US Federal Reserve (Fed) could stifle economic growth. What is of interest is how much and how quickly interest rates are raised as a means of combating high inflation. The European Central Bank is likely to end its securities purchases on Thursday and signal an initial interest rate hike. The next interest rate decision by the US Federal Reserve (Fed) is due in mid-June. In Australia, the central bank there surprised this Tuesday and raised the key interest rate more than expected.
According to retailers, the problems of the US discounter Target, the second largest after Walmart, which has now lowered its annual targets for the second time within a few weeks, but also of its competitors, illustrate the current growth risks. In addition, inflation is affecting consumer demand, which is turning away from more expensive products and increasingly in favor of less profitable staple foods.
Target, citing rising costs from inflation and supply chain disruptions, is now trying to deal with its problems with more discounts, fewer orders, and destocking. The retailer is forecasting a much lower operating margin for the second quarter than it did in mid-May. Target ultimately dropped 2.3 percent and Walmart subsequently fell 1.2 percent at the Dow end. Before Target, Walmart also cut its annual targets in May after a significant drop in profits in the first quarter of 2022. The shares of the world’s largest online retailer Amazon were also among the biggest losers at minus 1.4 percent.
Shares in US retailer Kohl?s (Kohls), on the other hand, jumped 8.2 percent. They benefited from the prospect of a takeover by Franchise Group (Franchise Group A), whose shares rose by 4.8 percent. Kohl’s board of directors has agreed to exclusive negotiations.
The papers of the vaccine manufacturer Novavax, which rose by 6.2 percent on Monday, remained suspended from trading. Important news are pending, it was said. An FDA panel is discussing the approval of Novavax’s Covid-19 vaccine.
The euro moved little in subsequent US trading, closing at $1.7070 on Wall Street. The ECB previously set the reference rate in Frankfurt at 1.0662 (Monday: 1.0726) dollars. The dollar thus cost 0.9379 (0.9323) euros.
On the US bond market, the futures contract for ten-year Treasuries (T-Note Future) rose 0.33 percent to 118.84 points in late trading. The yield on ten-year government bonds fell back below 3 percent to 2.98 percent most recently./ck/he
— By Claudia Müller, dpa-AFX —
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