NEW YORK (awp international) – The swing stock exchange in the USA continued with losses on Wednesday. After ups and downs the day before – with surprisingly clear gains at the close of trading – the most important indices fell again. Yields on benchmark 10-year US Treasuries rose above 3 percent again.
Investors continue to weigh up the risks to economic growth arising from central banks’ efforts to curb high inflation. Accordingly, the mood fluctuates between optimism and pessimism, so that a clear trend on the stock markets is still not discernible. It is grist to the mills of the pessimists that the industrialized nations organization OECD has corrected its growth forecast for the global economy significantly downwards because of the war in Ukraine.
The leading index Dow Jones Industrial ended trading down 0.81 percent to 32,910.90 points. The market-wide S&P 500 fell by 1.08 percent to 4115.77 points in the middle of the week. The technology-heavy Nasdaq 100 lost 0.76 percent to 12,615.13 points after temporary gains.
The focus this Thursday will be on the European Central Bank (ECB), which is expected to herald the turnaround in interest rates in the euro area in July and at the same time decide to end its asset purchases. The next interest rate decision by the US Federal Reserve (Fed) will follow next week. In the fight against inflation, it has already raised interest rates significantly and recently tightened its monetary policy. Fresh inflation data from the US will be released on Friday.
Among the individual values, the shares of the soup manufacturer Campbell were in focus. The company had raised its sales forecast, and the share rose by 1.5 percent. JPMorgan analyst Ken Goldman spoke of strong quarterly figures, but the forecast range for earnings per share in the fourth fiscal quarter missed market expectations.
Among the other individual values, Novavax rose by 5.4 percent after the papers had been suspended from trading the previous day. An advisory board to the US Food and Drug Administration (FDA) has come out in favor of emergency use authorization for the corona vaccine NVX-COV2373 for adults.
Chinese tech companies listed on the Nasdaq, such as Alibaba and Baidu, also rose. Alibaba jumped almost 15 percent, Didi Global around 12 percent and Baidu 1.5 percent. In Hong Kong trading, hopes of a easing regulatory stranglehold from Beijing had already prompted a rally among technology stocks. The papers of the travel agent and delivery service provider also helped again that the Chinese government wants to complete the investigation against Didi, as the “Wall Street Journal” recently reported.
Shares in TV streaming provider Roku jumped 9.1 percent. There was speculation in the market about the possibility of a takeover by Netflix. These increased by 2.1 percent. The US bank JPMorgan considers such a transaction to be “highly unlikely”.
State Street lost 5.4 percent. There were rumors that the US finance company was interested in taking over the crisis-ridden Swiss bank Credit Suisse. This was reported in a report by the Swiss finance portal “Inside Paradeplatz”. A spokeswoman for the bank declined to comment on the speculation.
The euro closed at $1.0714 on Wall Street. The ECB had previously set the reference rate in Frankfurt at 1.0739 (Tuesday: 1.0662) dollars. The dollar had thus cost 0.9312 (0.9379) euros.
On the US bond market, the futures contract for ten-year Treasuries (T-Note Future) fell by 0.33 percent to 118.56 points. The yield on ten-year government bonds rose to 3.03 percent./ck/he
— By Claudia Müller, dpa-AFX —
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