indexes in this article
NEW YORK (dpa-AFX) – The recently stabilized US stock exchanges gave way again on Monday. In particular, the economically sensitive technology stocks came under pressure. Market participants once again referred to the interest rate, inflation and recession fears that are now part of everyday stock market life. Ahead of more important economic news this week and the beginning of the US corporate accounting season, these worries have investors a bit more in their grip.
In addition, the focus on China dampened investors’ appetite for risk. The number of new infections there reached its highest level since the end of May. Authorities say the risk is very high, fueling further market concerns as Beijing remains committed to its zero-Covid strategy. Against this background, investors fear new delivery bottlenecks if the government should impose lockdowns again to contain the virus.
The leading US index Dow Jones Industrial (Dow Jones 30 Industrial) recently fell by 0.33 percent to 31,233.74 points. The market-wide S&P 500 fell 0.90 percent to 3864.43 points. The tech-heavy NASDAQ 100 was down 1.60 percent to 11,931.16 points.
In the past week, the most important US indices had recovered a bit. With the robust US jobs report presented on Friday, however, the momentum of stabilization has already ebbed – because many Brsians see this as confirmation of the expectation that the gates for a further significant tightening of the USmonetary policy are wide open. However, this also gives rise to fears that the currency holders may overshoot the target and thus damage the economy, and that equities will become less attractive compared to other asset classes.
“A higher-than-expected consumer price inflation would increase the pressure on the US central bankers to continue to counter the price pressure with extensive interest rate hikes after the strong labor market figures,” conclude the experts at Postbank with a view to the upcoming data on inflation over the course of the week.
In terms of individual stocks, Twitter stocks (Twitter) were once again in the spotlight, as billionr Elon Musk does not want to buy the short message service after all. Musk’s lawyers justified the withdrawal with allegedly insufficient information on the number of fake accounts. The company wants to push through the deal in court, and the shares recently dropped by more than seven percent.
Uber’s shares fell by a good three percent. Internal documents from the transport service broker from the years 2013 to 2017 that have now come to light gave deeper insights into the aggressive business practices of the company at the time./la/he
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