NEW YORK (dpa-AFX) – The fear of inflation has the US stock exchanges firmly under control. 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. / La / men
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