NEW YORK (dpa-AFX) – The Dow Jones Industrial (Dow Jones 30 Industrial) ended a week dominated by monetary policy in the red on Friday. While the US benchmark index had risen significantly in the middle of the week, skepticism has prevailed again recently. Investors are unsettled because more and more central banks are taking their foot off the accelerator or even starting to brake. The background to this is the high and rising inflation in many places, which has long been dismissed as a temporary matter.
The Dow lost 1.48 percent to 35,365.44 points. On a weekly basis, this results in a decrease of 1.68 percent. The market-wide S&P 500 fell on Friday by 1.03 percent to 4620.64 meters. The technology-oriented NASDAQ 100 fell 0.39 percent to 15,801.46 points.
The European Central Bank (ECB) had temporarily increased its bond purchase program APP again the day before because of the risks posed by the new Corona variant Omikron. The Bank of England surprised on Thursday with an initial rate hike and the US Federal Reserve will initially reduce its asset purchases to support the economy more quickly. As a result, investors were increasingly concerned about the effects of tighter interest rates on the stock market.
The US stock exchanges were also burdened by the great decline on the futures exchanges. Options and futures on individual stocks and on indices expired. These days are known for noticeably fluctuating prices.
Looking at the individual stocks, there was a whole series of price-moving news. According to a report in the “Wall Street Journal”, the SAP rival (SAP SE) Oracle is facing the largest takeover in its history. Accordingly, he could reach for the health software specialist Cerner, whose shares at the top of the S&P 500 rose by around 13 percent.
At first glance, the analyst Karl Keirstead from Bank UBS drew a negative conclusion from such a step for Oracle investors, even if the probability and the conditions are uncertain. Among other things, the expert fears that such a large takeover will result in a serious shift in the group away from its focus on debt and cash-financed share buyback programs. Oracle’s papers lost more than six percent.
The shares of the logistics company FedEx rose by around five percent. Investors honored a surprisingly strong quarterly report and the increased profit outlook.
The shares of Tesla rival (Tesla) Rivian (Rivian Automotive), in turn, fell to their lowest level since the IPO in November and fell by a good ten percent in the end. When the company presented its first figures, it had to admit that this year’s production target of 1200 electric pick-ups will be missed by a few hundred cars. To ramp up production is more difficult than expected, said company boss Robert Scaringe.
The car manufacturer General Motors (GM) has to look for a new boss for its ambitious Robotaxi subsidiary Cruise. Cruise boss Dan Ammann is leaving the company. Investors acknowledged the news with a minus of five and a half percent.
In view of the gloomy mood on the stock market, investors withdrew into the world reserve currency, the US dollar, which put a corresponding burden on the euro. The common currency was last traded at $ 1.1237. The ECB set the reference rate at 1.1330 (Thursday: 1.1336) dollars. The dollar cost 0.8826 (0.8822) euros. The futures contract for ten-year US Treasuries rose by 0.01 percent to 131.11 points. The yield on ten-year government bonds was 1.41 percent./la/men
— By Lutz Alexander, dpa-AFX —
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