NEW YORK (awp international) – The fear of inflation still has a firm grip on the US stock exchanges. The day before major monetary policy decisions were announced, interest rate-sensitive technology stocks extended their recent losses. However, the leading index Dow Jones Industrial only fell slightly this Tuesday.
The Dow closed 0.30 percent in the red at 35,544.18 points. The market-wide S&P 500 lost 0.75 percent to 4634.09 meters. For the technology-heavy Nasdaq 100, it fell 1.04 percent to 15,914.90 points. In the meantime it had even slumped by more than 2 percent.
Investors reacted nervously to news that producer prices had continued to soar. In November, prices at the manufacturer level rose by a surprisingly high 9.6 percent compared to the same month last year and thus even faster than in October. Should the US Federal Reserve raise interest rates earlier than expected to combat inflation in the coming year, this would hit the strongly growth-oriented technology sector particularly hard, as corporate financing conditions could become less favorable.
US Federal Reserve Chairman Jerome Powell is increasingly coming under pressure because of the recent sharp rise in inflation, said market analyst Christian Henke from trading house IG. For many market participants, the Fed could already accelerate the reduction in bond purchases tomorrow – despite new corona worries. This would also open up the possibility of raising key interest rates earlier than previously expected in the coming year.
The focus was also on the discussion on raising the debt ceiling in Congress this Tuesday. A failure could hit the markets hard, believes CMC Markets analyst Jochen Stanzl.
At the bottom of the S&P 500, the shares of Adobe Systems fell 6.6 percent and suffered from a skeptical study by the US bank JPMorgan. Analyst Sterling Auty pointed out, among other things, the limited upside potential of the papers of the software group given the risk of a rise in interest rates in 2022.
Uber’s shares soared by a good four percent. Stock marketers cited encouraging statements from company boss Dara Khosrowshahi at an analyst event as the reason. In terms of gross bookings, the travel agent achieved a record in the last week. In the wake of this, the papers of the competitor Lyft gained one and a half percent.
Terminix Global’s stocks ended their most recent downward trend and jumped back to their level at the end of September with an increase of around 18 percent. The British pesticide manufacturer Rentokil plans to take over the US competitor. Rentokil’s shares plummeted by more than 12 percent in London. According to analysts, the new company could become a world market leader, but the purchase price is high.
The fresh price data from the USA weighed a little on the euro. Most recently, $ 1.1257 was paid. The European Central Bank had previously set the reference rate at 1.1309 (Monday: 1.1278) dollars. The dollar cost 0.8843 (0.8867) euros.
US Treasuries also fell in the face of renewed interest rate worries. The futures contract for ten-year Treasuries fell 0.14 percent to 130.66 points. In return, the yield on ten-year government bonds rose to 1.44 percent./la/men
— By Lutz Alexander, dpa-AFX —
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