NEW YORK (dpa-AFX) – Investors’ fears of a recession that had flared up again were followed by reluctance on the US stock exchanges on Wednesday. In the early hours, trading was characterized by nervousness, but then the New York indices leveled off at a level slightly above the previous day’s closing prices. There were somewhat clearer gains two hours before the end of the Dow Jones Industrial which rose 0.45 percent to 31,086.14 points.
After there had been a strong setback the day before, especially in the technology sector, the Nasdaq stock market was not able to clearly recover. The Nasdaq 100 selection index , which had already gained 0.6 percent and lost 0.9 percent at the peak, was recently slightly up 0.16 percent at 11,656.69 points. The market-broad S&P 500 managed to just break even with 3822.74 points.
The day before, dwindling consumer confidence had fueled concerns again that the USA could slide into a recession, also under the influence of rising interest rates. On Wednesday it was reported that the US economy contracted slightly more than previously estimated at an annualized 1.6 percent in the first quarter. The figures for private consumption have been revised significantly downwards.
The market is still concerned that combating high inflation with rising interest rates will endanger economic development. It didn’t change much that the head of the US Federal Reserve, Jerome Powell, expressed confidence on Wednesday. Speaking at an ECB forum, the US economy is in strong shape to fight inflation while keeping the job market healthy.
“Central banks are walking a very fine line and to some extent dictating market sentiment,” said Barclays equity strategist Emmanuel Cau. “It appears the market is in a tug-of-war between hope that we are nearing the peak of inflation and interest rates and the challenge of a slowing economy and a possible recession.”
Among the individual values, the shares of the electric car manufacturer Tesla slipped
by 2.9 percent. According to circles, the manufacturer could cut more jobs because of the current economic crisis. Accordingly, 200 employees who are currently working on an autopilot project in California are to leave.
After a relatively good run recently, investors from Fedex
no longer enjoy new medium-term goals. The shares of the US logistics group slipped by 2.2 percent, although it has made further growth for the next three years. In addition, profitability is to be further increased.
Bad news came from retailer Bed Bath & Beyond
, which reported a higher-than-expected loss for the fiscal first quarter. It was said on the market that the papers had recently become an object of speculation among private investors who organize themselves on the Internet. The hope of rapidly rising prices is now suddenly changing. With a price slump of almost 23 percent, they reached the lowest price level since April 2020.
Carnival shareholders also experienced a sharp setback
, who were recently able to look forward to a price recovery. Profit-taking followed on Wednesday at the cruise operator, the course rushed in New York by almost 15 percent. Morgan Stanley analysts warned the shares could face a worthless scenario if demand for cruises experienced another demand shock.
The Amazon titles were a positive phenomenon , which rose by 1.8 percent. JPMorgan analyst Douglas Anmuth reduced his assumptions for US Internet stocks and thus the Amazon target price to $175 due to current consumer concerns. For the expert, the online retailer remains one of the “top ideas” in the sector. The new target promises 60 percent upside potential.
A study by the analysis company Redburn, which sees a spin-off of Amazon’s cloud division as an attractive option for the future, was also referred to as a driver for the online giant. The study speculates that it could soon be worth $3 trillion. This would be almost three times the current stock market value of the entire group.
There were also price gains of 5.6 percent at the food company General Mills . Shares rose after the company said price hikes and easing supply chain disruptions would soon boost sales again./tih/men
ISIN US2605661048 US6311011026 US78378X1072
AXC0386 2022-06-29/20:15
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