NEW YORK (dpa-AFX) – After strong gains at the start of the week, investors on the US stock markets were scared again on Tuesday. Pressure came into the market last hour after the US news website Stat became critical of the vaccine’s candidate BiotechGroup Moderna against lung disease Covid-19 reported. News of positive interim results in an early test study had caused euphoria at the beginning of the week and triggered a stock market rally.
Now the Dow Jones Industrial (Dow Jones 30 Industrial) closed at minus 1.59 percent to 24 206.86 points just above the daily low, thus returning part of its almost four percent profit from the previous day. The market-wide S&P 500 closed 1.05 percent lower at 2922.94 points. The technology-heavy NASDAQ 100, which had grown over the course of the day, turned negative in the last few minutes of trading and ultimately fell 0.36 percent to 9298.55 points.
In light of this, the quarterly reports of home improvement chain and retailer Walmart faded. Investors were also unimpressed by statements by Fed Chairman Jerome Powell and Treasury Secretary Steven Mnuchin before the Senate Banking Committee.
Powell had repeated that the US Federal Reserve would use all of its instruments to combat the corona crisis. At the same time, he emphasized that the Fed’s use was only part of broad support from public authorities and thus probably alluded to his plea for additional government funding. “While Powell’s glass was half empty most of the time and he stressed that more needs to be done to help the economy, Mnuchin’s outlook for improving economic conditions in the second half of the year was that of a half full glass,” said market analyst Edward Moya from the currency broker Oanda. Neither of them would have knocked anyone off their feet because “there was nothing groundbreaking new as an answer to Covid-19”.
Home Depot lost just under 3 percent of the individual values in the Dow, and Walmart ultimately lost a little more than 2 percent after early profits. Because of the uncertainties surrounding the corona pandemic, both groups had conceded their outlook for the current financial year. But while Walmart posted a better-than-expected quarterly profit, Home Depot’s robust quarterly earnings were not accompanied by a correspondingly strong profitability. It was the first time in six years that Home Depot disappointed with its results. At times, the shares had therefore taken different directions. However, both still have one thing in common: Walmart reached a record high at $ 133.38 on April 20, and Home Depot the previous day at $ 248.32.
Kohl’s (Kohls) shares lost 7.7 percent on Nyse after the retailer disappointed in both sales and earnings in the past quarter. The company also expects further pressure on margins.
Moderna (Moderna), which jumped 20 percent on Nasdaq on Monday, now lost a little more than 10 percent. Weak closed as well Oil stocksafter the recovery in the oil market stalled. In the Dow, for example, ExxonMobil and Chevron each lost around 3 percent.
Technology stocks had a mostly good run, but in the end profits also crumbled. However, Intel was still able to stay at the top of the Dow with an increase of 0.6 percent.
The euro exchange rate moved little in US trade. At the close on Wall Street, the common currency was $ 1.0924. The European Central Bank set the reference price at $ 1.0950 (Monday: 1.0832). The dollar thus cost 0.9132 (0.9232) euros. In the US bond market, trend-setting ten-year government bonds gained 7/32 points to 99 8/32 points and yielded 0.701 percent / h / h
— By Claudia Müller, dpa-AFX —
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