NEW YORK (dpa-AFX) – The US stock exchanges gave up a large part of their strong gains from the previous day on Friday. At the same time, the US government’s monthly employment report was the dominant topic on the financial markets. Unlike the report from the US private sector on Thursday, this was stronger than expected. Sentiment data from the service sector, which was slightly weaker than forecast but still encouraging, had little impact.
In view of the number of employees, the sharp rise in inflation and wages and expected decent economic growth in the second quarter, there is no reason for the US Federal Reserve (Fed) not to aggressively push ahead with interest rate hikes, commented economist Thomas Gitzel from VP Bank in Liechtenstein.
But investors in the stock market don’t really like it, because rising interest rates are making other forms of investment, such as bonds, more interesting again. The best-known Wall Street index Dow Jones Industrial (Dow Jones 30 Industrial) lost 1.05 percent to 32,899.70 points, which largely erased the previous day’s gains. In the course of the shortened trading week, the Dow has currently lost 0.9 percent.
The market-wide S&P 500 fell 1.63 percent on Friday to 4108.54 points, while the NASDAQ 100 index, which is mainly stocked with technology stocks, fell 2.67 percent to 12,548.03 points. He currently has a weekly minus of 1.1 percent.
The day before, after weak labor market data from the private sector, some investors were becoming more convinced that the Fed should not tighten interest rates against this background.
Among the big names, Tesla and Apple attracted attention. At the electric car manufacturer, a report by the Reuters news agency put pressure on the mood of investors, which suggests that Tesla boss Elon Musk about the economic development. In an internal email to senior management, Musk said a workforce reduction of about 10 percent was necessary. In addition, no new employees should currently be hired worldwide.
Tesla shares fell 9.2 percent in the Nasdaq 100 as one of the laggards. It also pulled other car values down: the papers of the competitor Rivian (Rivian Automotive) fell by 5.5 percent and GM (General Motors) and Ford (Ford Motor) each lost around three percent.
Apple, the bottom performer in the Dow, fell 3.9 percent against the backdrop of skeptical statements from bank Morgan Stanley. Analyst Katy Huberty warned that the weaker growth of Apple’s App Store in May compared to the previous year carries risks for the quarterly estimates in the service business of the iPhone manufacturer.
The focus was also on a takeover project. After the bid by the pharmaceutical company Bristol-Myers Squibb (BMS) (Bristol-Myers Squibb) for the cancer specialist Turning Point Therapeutics, its share price more than doubled to $74.59. BMS is offering $76 in cash for all outstanding Turning Point shares, or $4.1 billion in total. The BMS share itself was almost unchanged.
The euro weakened after a roller coaster ride in US trade, and then closed at $1.0720 on Wall Street. The European Central Bank previously set the reference rate in Frankfurt at 1.0730 (Thursday: 1.0692) dollars. The dollar thus cost 0.9320 (0.9353) euros.
On the US bond market, the futures contract for ten-year Treasuries (T-Note Future) fell by 0.14 percent to 119.11 points. The yield on ten-year government bonds rose to 2.95 percent./ck/he
— By Claudia Müller, dpa-AFX —
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