Börse Express – New York shares: Investors avoid shares in view of high market interest rates

NEW YORK (dpa-AFX) – In view of persistently high interest rates on the capital markets, investors on the US stock exchanges held back on Wednesday. The Dow Jones Industrial
was 0.11 percent weaker at 32,621.35 points. In the first few minutes of trading, the index fell to its lowest level since November. Above all, the price gains of classic industrial stocks such as Caterpillar saved the Dow from higher losses
3M und Dow Inc .

The yield on ten-year US government bonds rose above the four percent mark for the first time in almost four months. That’s twice the average dividend yield of the 500 companies in the S&P 500 stock index, wrote Seema Shah, strategist at Principal Asset Management. In this environment, investors preferred to play it safe and into government bonds.

The S&P 500 fell by 0.45 percent to 3952.17 points. The tech-heavy Nasdaq 100 was down 0.75 percent at 11,951.54 points.

The share price of the pharmaceutical company Novavax slumped by more than a quarter after the group announced a surprisingly high quarterly loss. Sales development was also disappointing. In addition, Novavax sees great uncertainty regarding the sales prospects for 2023 and is considering a significant reduction in its expenses.

The shares of the electric car manufacturer Rivian suffered a price slide of almost 19 percent . Weak figures and a disappointing outlook also had a negative impact here. The shares of the big competitor Tesla lost two percent in the Rivian fairway.

In contrast, the solar group First Solar inspire investors with a surprisingly good earnings outlook, as the price increase of 15 percent shows. Disappointing sales from retailer Kohl’s in the fourth quarter of 2022 pushed the price down by almost four percent.

Among the smaller stocks, shares of Reata Pharma soared
up by 175 percent. The US health authority FDA has given the green light to the company’s drug for a rare disease of the central nervous system

 ISIN  US2605661048  US6311011026  US78378X1072

AXC0361 2023-03-01/20:05

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.