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A higher than expected US inflation rate is taking a heavy toll on the New York stock markets. Tech exchange Nasdaq was hit by another 2.5 percent on Wednesday. The S&P 500 had its worst day since February.
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US inflation is in April unexpectedly rose above 4 percent. Investors see this confirming their previous fears: the prices of products and services are rising and central banks will encourage a tighter monetary policy to prevent the economy from overheating. That doom image caused a new round of sales on the American stock exchanges on Wednesday.
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Losses are again stronger for tech stocks, which are sensitive to higher interest rates. Nasdaq had to give up 2.5 percent. But the sell-off in tech stocks is now clearly reaching the broader market as well. The Dow Jones lost 1.8 percent, the broad S&P 500 had its worst day since February with a loss of 2.1 percent. The European stock markets were largely able to shake off the high American inflation rate and closed with a profit.
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According to the Federal Reserve, the surge in inflation is transitory, temporary. But market observers question the sustainability of that view. “We believe it is becoming more likely that the Federal Reserve will hike interest rates significantly earlier than 2024,” writes ING chief economist James Knigtley.
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Bull Bear & Bas about the unrest on Nasdaq.
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The biggest victims on Wednesday included chip makers Nvidia
and Qualcomm
with losses of up to three percent. Also vaccine manufacturer Moderna
had to give up considerably. Within the Nasdaq 100, the index with the 100 largest tech players, only seven companies were able to close at a profit.
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Oil
A rare winner in the troubled tech corps is FuboTv
, a streaming platform for sports matches. The platform saw the number of users double in the past quarter to almost 600,000. Revenue also more than doubled to $ 119.7 million while advertising revenues tripled. FuboTv won 10.4 percent.
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In the midst of risk aversion, oil stocks received a counter-push. The International Energy Agency (IEA) predicted a sharp rebound in demand for oil on Wednesday morning by some 6.5 million barrels per barrel between now and the end of 2021. The US oil giants were among the top daily winners, although enthusiasm cooled throughout the day. Occidental Petroleum
in oliedienstverlener Schlumberger
the largest final profits were left in the oil sector.
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