NEW YORK (dpa-AFX) – After two very weak weeks, Wall Street will probably start a new stabilization attempt on Friday. The leading index Dow Jones Industrial was rated 0.8 percent higher at 30,166 points by the broker IG about an hour before the start. In the past few trading days it had collapsed by almost 10 percent and on Thursday fell below 30,000 points for the first time since January 2021.
The rudder is currently in the hands of the central banks. They are trying to curb the immensely high inflation by raising interest rates – with the risk of slowing down the economy. On Wednesday, investors reacted calmly to the US Federal Reserve’s 0.75 percent interest rate hike since 1994. However, when the Swiss National Bank surprisingly increased its key interest rate significantly the day before, the dams burst in Europe and the USA. However, they also have to act, since high inflation also harbors economic risks, since people then change their consumer behavior.
The broad S&P 500 had it even worse with a minus of 11 percent in around two weeks and threw it back to the lowest level since the end of 2020. In view of the recession concerns, it slipped into the so-called bear market earlier this week. This is what stockbrokers call the phase of persistently falling prices as soon as a price barometer has moved at least 20 percent from its record high. The S&P 500 is now expected to have recovered one percent on Friday. In the Nasdaq 100 technology selection index a stabilization of 1.2 percent at the low since autumn 2020 beckons.
However, Adobe Systems are under pressure before the market . Despite the business figures being better than feared, many analysts lowered their price targets for the software manufacturer, whose outlook was not convincing. Deutsche Bank expert Brad Zelnick thought it was a wise move to dampen expectations, but he also capped his price target.
Meanwhile, US Steel is clearly on the up . Similar to some of its competitors, the US steel group was surprisingly positive about business development in the current quarter and issued an earnings target range (EPS) above the consensus estimate, explained analyst Jitendra Pandey from Credit Suisse ./ag/mis
ISIN US2605661048 US6311011026 US78378X1072
AXC0158 2022-06-17 / 14: 36
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