ROUNDUP/New York stocks: Wall Street continues to slide | news

NEW YORK (dpa-AFX) – After the US job market report on Friday, Wall Street still does not rest. Investors remained cautious in anticipation of further interest rate hikes. The Dow Jones Industrial (Dow Jones 30 Industrial) initially slumped by up to 1.5 percent in a nervous opening session. With 32,667.36 points, he recently reduced his minus to one percent. In the course of the week he has lost almost one percent.

The fluctuations on the Nasdaq stock exchange were even more pronounced: the technology-heavy NASDAQ 100 lost 1.21 percent to 12,695.31 points after one hour of trading. While the Dow recently hit its lowest level since February, the Nasdaq index is now at its lowest level since early March 2021. Its daily loss on Friday is roughly in line with its weekly total.

Investors are currently facing three problems at once: slowing growth, higher costs and rising interest rates, said market strategist Sean Darby of investment bank Jefferies. Only on Wednesday did the US Federal Reserve raise interest rates by a further 0.50 percentage points.

“With their measures in the current situation, the central banks also have to accept harmful side effects on the economy. Fighting inflation now has priority,” said chief economist Ulrich Kater from Dekabank. While investors reacted with relief on Wednesday that the Fed’s interest rate hike had not been even higher, caution was called for again on Thursday due to the consequences of the interest rate hikes.

Accordingly, fresh economic data are treated particularly critically – such as the US job market report at the end of the week. This showed that the US economy had created more jobs in April than expected. In addition, the unemployment rate stagnated and wages rose more slowly than forecast. “Again a significant increase in new jobs – the Fed remains under pressure,” commented analyst Tobias Basse from NordLB.

When looking at individual values, oil companies were once again a positive exception due to rising oil prices. While the debate about a European oil embargo against Russia continues, the announcement by the USA that the refilling of strategic oil reserves is to begin this fall caused prices to rise. Chevron were among the best Dow stocks, up half a percent.

In contrast, it was a gloomy day for investors in the US sporting goods sector. While Under Armor shares were down 23 percent on the basis of the numbers, Nike shares were also recorded on the Dow at a discount of 5 percent. Under Armor disappointed investors not only with a quarterly loss, but also with the annual outlook. UBS analyst Jay Sole now sees a correction risk of up to 19 percent for earnings estimates on the market.

Meanwhile, the now record-low Peloton shares (Peloton Interactive) are not getting back on their feet on the Nasdaq. The papers of the fitness specialist, once traded as a big Corona winner, fell again by nine percent on Friday. As the Bloomberg news agency wrote, citing circles, the company is currently looking for a large investor who could get in with 20 percent of the shares./tih/he

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