Börse Express – New York shares: Dow on a downward slide

NEW YORK (dpa-AFX) – The US stock markets plummeted on Tuesday after a long weekend. Recession concerns dominated the mood. In the course of trading, however, the technology-heavy Nasdaq indices recovered significantly and even increased around two hours before the close of trading. In the past week, however, they had also lost significantly more than the standard values.

The leading index Dow Jones Industrial recently fell by 1.43 percent to 30,652.56 points, thus expanding its slightly more than one percent loss from the past week. The market-wide S&P 500 reduced its minus in trading on Tuesday to 0.95 percent to 3789.02 points. The Nasdaq Selection Index 100 rose by 0.60 percent to 11,654.82 points. However, it had lost a little more than four percent in the past week.

On the one hand, there was some confidence in the market, as the US and China are in talks to possibly roll back some of the trade tariffs once introduced under Donald Trump. On the other hand, however, recession worries weighed heavily, especially since it was said on the market that a reduction in tariffs on imports of Chinese goods could do little to cool down the high inflation.

The surprisingly good incoming orders data from US industry for the month of May also received relatively little attention. In view of the prevailing supply chain problems and the resulting backlog of orders, such data had become secondary, it was also said.

The fact that the euro fell to a 20-year low against the US dollar also contributed to the market turmoil. The common currency has been burdened for some time by the sometimes very gloomy mood on the international financial markets. In contrast, the dollar benefits because many investors value it not only as a safe form of investment, but also as a very liquid form of investment due to the size of the US financial market. The US Federal Reserve’s aggressive pace of rate hikes is also driving the dollar.

The US economic prospects, however, are now assessed by JPMorgan as poor as in Western Europe. The economists at the US bank therefore cut their estimates significantly. For the question of whether weak growth will ultimately turn into a recession, the reaction of companies is decisive, they wrote.

Among the individual stocks suffered in the Dow UnitedHealth as the weakest share, it lost 4.4 percent. Nike meanwhile, the Dow peak rose 2.0 percent. However, they only fell to their lowest level in around two years on Friday.

The papers of the corona vaccine manufacturers were in the black – even if it was Biontech rather negative news. The Tübingen biotech company Curevac filed a lawsuit against Biontech and two subsidiaries in Germany. The company speaks of patent infringement. It is about the vaccine Comirnaty from Biontech/Pfizer (Germany/USA). Curevac rose 1.1 percent, Biontech rose 0.7 percent, while shares in Biontech pharmaceutical partner Pfizer fell by 2.5 percent. In the Nasdaq 100 also put the shares of the competitor Moderna by 1.9 percent to./ck/stw

 ISIN  US2605661048  US6311011026  US78378X1072

AXC0303 2022-07-05/20:12

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