Börse Express – New York Shares Outlook: Unwillingness to Tackle Fed After Disappointing Previous Day

NEW YORK (dpa-AFX) – Initial enthusiasm for more subdued US inflation data faded quickly the day before. On Wednesday, it now appears that the buyers will not return even before the Federal Reserve’s interest rate decision tonight.

Der Dow Jones industrialist it is expected by the IG broker slightly in the red at 34,088 points. The major US index jumped initially to 34,712 points on Tuesday, the highest level since April. Investors were pleased as the inflation rate eased to 7.1% year over year in November. There’s nothing stopping the Fed from raising the key interest rate this time by just 0.5 percentage point after four meetings with a 0.75 percentage point hike each time.

However, investors will not be satisfied with a slower turnaround, explained portfolio manager Thomas Altmann of QC Partners. “In view of the new significant decline in the inflation rate, stock traders are expecting an outlook for the end of the hike cycle,” said the expert. “And those expectations have intensified again.” The first forecasted the last interest rate hike in March and the first rate cuts in the third quarter at the latest. Altmann sees immense risks of disappointment here.

Also the Nasdaq 100 technology selection index slightly weaker IG estimate at 11,815 points. The day before, it had briefly returned to its mid-September level with 12,166 points.

Among individual stocks, investors should especially consider mid-week Tesla stock on Tuesday, it fell to $156.91, its lowest level since November 2020. The annual downside for the electric car maker’s cards was about 55%. Before the market, the stock tends to fall back to the previous day’s low.

Shares of Charter Communications are down sharply. The telecommunications group is investing more than expected in its networks and therefore has less money to buy back its shares. A JPMorgan In any case, the analyst lowered his expectations.

Stocks from Best Buy, Penn Entertainment and especially Quantumscape hurt as analyst ratings fell before the market
. On the other hand, Delta Airlines rose after positive trade signals./ag/mis

 ISIN  US2605661048  US6311011026  US78378X1072

AXC0198 2022-12-14/14:37

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