Home » today » News » Stocks New York Outlook: Tech slide continues – Dow stabilizes

Stocks New York Outlook: Tech slide continues – Dow stabilizes

was seen half a percent lower after the last two days with heavy losses. If it falls below the 15,700 point mark, things get interesting from a technical perspective: the 100-day average line, which is popular with investors as a medium-term indicator, is currently running at 15,671 points.

“The Minutes surprised the markets because they reveal a rather aggressive monetary policy view of the central bankers,” said DZ Bank analyst Birgit Henseler in a comment. From the details of the previous meeting it emerged that a faster rate hike may be justified in light of economic and inflationary trends. In addition, there were voices that the central bank should start reducing total assets shortly after the first interest rate hike.

Investors from the banking sector are happy to respond to this, because here higher interest rates are seen as beneficial for day-to-day business, for example with loans. The papers of the major US banks JPMorgan , Morgan Stanley or Citigroup climbed in pre-trading between 1.3 and 1.5 percent. The reporting season for banks will also begin next week. JPMorgan expert Vivek Juneja expects very strong credit growth. This means that the industry should not only benefit from rising interest rates in the new year, according to his thesis.

The fear of interest rates, which has come back into focus, is having a negative impact, especially in the growth stocks from the technology sector, where a loose monetary policy is seen as an important criterion for the strong momentum of recent years. For Tesla’s papers , an important indicator of the general mood on the Nasdaq, for example, the pre-trading session continued to decline by 1.4 percent. The price is gradually approaching the psychologically important $ 1,000 mark again.

Otherwise there was only a few moving news on the company side. A pillar for the Dow are pre-market shares of the drugstore and pharmacy chain Walgreens Boots Alliance, which are 4.2 percent stronger . Thanks to corona vaccinations and tests, this started the new financial year with surprisingly strong growth. In the course of the quarterly figures, the company’s annual forecast was raised./tih/jha/

Source: dpa-AFX

– .

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.