NEW YORK (dpa-AFX) – The price gains from the previous day after the interest rate hike in the USA are just a day later waste again there. A tighter monetary policy by the central banks of Hong Kong, England and, surprisingly, also Switzerland on Thursday once again made investors aware of the risks of global inflation – together with the associated danger of a recession.
In this bad environment for stocks, the Dow Jones Industrial suffered 2.32 percent to 29,958 points. The stock market barometer fell below the 30,000 mark to its lowest level since the beginning of 2021. The market-wide S&P 500
lost 3.25 percent to 3667 points. The tech-heavy Nasdaq 100 dropped even more sharply by 4.11 percent to 11,117 points.
With the strong interest rate hike from the previous day, the US monetary authorities want to combat high inflation, but at the same time fueled fears of a recession. The economist Allison Boxer from the wealth manager Pimco spoke of “risks that the willingness of the Fed to fight inflation at any price ultimately comes at the expense of growth and employment”. There is a risk that the Fed will tighten interest rates too much.
Meanwhile, investors were caught on the wrong foot by the interest rate move by the Swiss National Bank. This followed the American example with a significant increase in interest rates of 0.5 percentage points. This is likely to fuel concerns about global economic growth. Meanwhile, the Bank of England raised interest rates by 0.25 percentage points, as expected. In Hong Kong, too, the central bank continued to tighten interest rates.
Tesla was on the US stock exchanges with a price setback of almost nine percent in focus. Apparently, investors resented the electric car maker for raising its vehicle prices in the domestic US market. In view of rising financing costs when buying a car, consumers could do without, said a dealer.
Abbott Laboratories shares lost almost three percent after the group reported a storm-related production stop for baby food at a US location.
For McDonald’s it fell by 1.6 percent, which means that the share held up quite well in a very weak market. The fast food chain pays 1.25 billion euros in France in a dispute over tax payments to end the process
ISIN US2605661048 US6311011026 US78378X1072
AXC0254 2022-06-16/20:05
Copyright dpa-AFX business news GmbH. All rights reserved. Redistribution, republication or permanent storage without the express prior consent of dpa-AFX is not permitted.
–
