On the last trading day of the week, price losses dominated the picture on the US stock exchanges. The leading index Dow Jones Industrial (Dow Jones 30 Industrial) gave on Friday at 0.48 …
NEW YORK (dpa-AFX) – On the last trading day of the week, price losses dominated the picture on the US stock exchanges. The leading index Dow Jones Industrial (Dow Jones 30 Industrial) fell on Friday by 0.48 percent to 34,584.88 points. On a weekly basis, the Dow has a slight loss to book. Over the course of the week, the index fluctuated below 35,000 points.
The so-called great decline on the futures exchanges is likely to have slowed the prices. On these four trading days a year, the stock business is usually determined by trading-technical aspects. The expiry date had weighed heavily on prices on Europe’s stock exchanges. But the meeting of the US Federal Reserve on Wednesday next week is already casting its shadow and causing nervousness among investors. The Fed is considering tightening the reins of monetary policy.
The market-wide S&P 500 lost 0.91 percent to 4432.99 meters. The NASDAQ 100 fell further with minus 1.18 percent to 15,333.47 points. It was the index’s biggest daily loss since May. Here investors took price gains in stocks from the semiconductor industry. Recently, papers such as NXP Semiconductors, Xilinx or those of the Dutch ASML (ASML NV), also listed in New York, had reached record levels.
Stock marketers speak of a “big decline” when the last trading day of all four types of derivatives, i.e. options and futures contracts on indices and stocks, falls on the same day. Share prices and indices are then prone to fluctuations even without specific news. Shortly before these derivatives expire, investors try to move prices in the direction that is favorable for them.
Price-moving corporate news was in short supply ahead of the weekend. The fund company Invesco is according to the “Wall Street Journal” in talks about a takeover of the financial services provider State Street. Invesco shares then rose 5.5 percent, while State Street fell 2.6 percent.
The steel manufacturer United States Steel is considering building another steel mill. As a result, the share price plummeted by eight percent. Analysts worry that additional production capacity could result in oversupply. Morgan Stanley’s Carlos de Alba pointed out that US Steel is likely to use up much of the cash on the construction.
The shares of Biontech (BioNTech (ADRs)) lost 3.6 percent. An advisory panel to the US FDA has spoken out against a booster vaccine against the coronavirus, which was developed together with Pfizer. Pfizer shares lost 1.3 percent.
In bond trading, prices fell. The futures contract for ten-year paper (T-Note-Future) fell by 0.26 percent to 132.75 points. The yield on ten-year paper rose to 1.37 percent and narrowly missed the jump to a high in two months. The euro expanded losses in late US trading, closing at $ 1.1730. The European Central Bank (ECB) had previously set the reference rate at 1.1780 (Thursday: 1.1763) US dollars. The dollar had thus cost 0.8489 (0.8501) euros./bek/men
— By Benjamin Krieger, dpa-AFX —