NEW YORK (dpa-AFX) – After the sobering start to the year, especially for technology stocks, the US stock exchanges also fell on Wednesday. The publication of the Fed’s most recent meeting minutes did not bring any relief to prices.
The leading index Dow Jones Industrial US2605661048 was 0.76 percent lower at 37,430.19 points at the close of trading on Wall Street. The technology-heavy Nasdaq 100 US6311011026, which had already fallen by around 1.7 percent the day before, fell by a further 1.06 percent to 16,368.49 points in the middle of the week. The market-wide S&P 500 US78378X1072 lost 0.80 percent to 4704.81 points.
According to the Federal Reserve’s minutes, Fed members see the key interest rate at or close to its peak. They are prepared to cut interest rates if the decline in inflation continues in 2024. The timing for such a step remains uncertain, as the transcript made clear. At the end of last year, market participants were still expecting several interest rate cuts in 2024, but since the beginning of the year there seem to be more and more doubts about this.
Hopes for interest rate cuts were the central reason for the stock market rally towards the end of 2023. As interest rate pressure eases, equity investments will become more attractive again compared to other forms of investment, and loans for companies will become cheaper. However, the stock exchanges have been on a consolidation course since the beginning of the year. Some investors who earned well during the year-end rally are currently taking profits, according to sources in the trade.
In the Dow on Wednesday, the shares of the oil company Chevron US1667641005 were the winner of the day with a gain of 1.9 percent. Behind them, the pharmaceutical and biotech stocks from Merck & Co US58933Y1055 and Amgen US0311621009 continued their upswing.
Walgreens Boots Alliance US9314271084 were at the bottom with a loss of a good four percent. The drugstore chain’s stocks were also the weakest value in the leading index in 2023, with a loss of 30 percent. The group will present its figures for the first quarter on Thursday.
The shares of the electric car producer Tesla US88160R1014 were among the weakest values on the Nasdaq with a discount of four percent. This means that the upward trend since the end of October has initially been broken. Looking ahead to 2024, Deutsche Bank analysts still see significant risks to Tesla’s earnings expectations.
The papers from the pharmaceutical company Dyne Therapeutics, which specializes in muscle diseases
The euro EU0009652759 limited its losses somewhat after the publication of the Fed minutes. While the common currency had previously temporarily traded below 1.09 US dollars, it was quoted at 1.0920 dollars after the market closed. The European Central Bank (ECB) had set the reference rate at 1.0919 (Tuesday: 1.0956) US dollars, so that the dollar cost 0.9158 (0.9127) euros.
On the US bond market, the futures contract for ten-year bonds (T-Note Future) rose by 0.21 percent to 112.53 points. In return, the yield on ten-year government securities fell to 3.91 percent./ajx/he
— By Achim Jüngling, dpa-AFX —
2024-01-03 22:48:52
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