NEW YORK (dpa-AFX) – The US stock exchanges noticeably curbed their significant losses from early trading on Thursday. The leading index Dow Jones Industrial fell recently by 0.38 percent to 30,912.07 points. The market-wide S&P 500
reduced its daily decline to 0.25 percent at 3809.21 points, while the tech-heavy select index Nasdaq 100
fell by 0.45 percent to 11,606.22 points.
For the first half of the year, which is coming to an end, the worst price developments in decades are emerging: the three US stock market barometers are heading for steep price drops of 15, 20 and 29 percent for this period.
The risk of further rising interest rates and a recession triggered by them continues to have a firm grip on the US stock markets. Market traders point out that US Federal Reserve Chairman Jerome Powell and his counterparts from the euro zone and Great Britain warned at a forum on Wednesday that inflation would last longer. This has fueled the debate “that continuing to raise interest rates to combat inflation will ultimately lead to a recession,” wrote market strategist Jim Reid of Deutsche Bank.
When prices rise, consumers try to curb spending. This is also confirmed by the less sharp rise in spending by US consumers in May than expected. In addition, according to revised data, spending in the previous month had risen more slowly than previously known.
The sluggish buying mood was felt on the stock exchange by the shares of the car manufacturer: Ford General Motors (GM)
and Stellantis lost between two and three and a half percent. As a comparatively expensive consumer product, cars are often the first to slip off private shopping lists. In addition, with rising capital market interest rates, purchase financing becomes more expensive – also for important corporate customers.
Shares in pharmacy chain Walgreens Boots Alliance
fell nearly 6 percent and were the biggest losers on the Dow. Analyst Lisa Gill from the bank JPMorgan referred to a below-expected profitability in the third fiscal quarter.
Papers from the Corona beer brewer Constellation Brands
lost a good four percent. A trader justified the losses with a cautious outlook for the second business quarter.
Biontech was among the winners of the day and Pfizer with premiums of around seven or 3.3 percent. The US government is ordering further corona vaccines from the two companies on a large scale for a planned booster campaign in the fall. According to Pfizer boss Albert Bourla, it is also about agents that are intended to protect against newer virus variants such as Omicron./gl/men
ISIN US2605661048 US6311011026 US78378X1072
AXC0373 2022-06-30/20:26
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