Börse Express – New York shares: prospect of sharply rising interest rates weighs on Dow again

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NEW YORK (dpa-AFX) – After the severe losses at the start of the week, investors on the US stock exchanges took a wait-and-see attitude on Tuesday. Because in view of persistently high inflation, the US Federal Reserve could tighten the interest rate screw on Wednesday. At the beginning of the week, high inflation, rising interest rates and the resulting fears of recession had already weighed heavily on prices.

The leading index Dow Jones Industrial recently fell by 0.75 percent to 30,289 points. It fell to another low since early last year. In the past four trading days, the loss has added up to around eight percent.

Investors’ interest rate concerns are underpinned by new data on inflation. For example, producer prices in May did not rise as much as feared over the year. With an increase of 10.8 percent, however, inflation is still extraordinarily high. A rate hike by the Fed by 0.50 or 0.75 percentage points is viewed as possible on the financial markets. Goldman Sachs expert Jan Hatzius expects another rate hike of 0.75 percentage points to follow in July.

The market-wide S&P 500 fell by 0.53 percent to 3730 points. The tech-heavy select index Nasdaq 100
held up a little better with an increase of 0.08 percent to 11,297 points.

Oracle’s shares recorded high price gains . According to the results of the final quarter of the financial year, it went up by almost ten percent. JPMorgan analyst Mark Murphy spoke of surprisingly solid growth at the highest pace since 2011. The software group’s outlook for the 2023 fiscal year is strong, even if a recession appears to be in the offing.

Shares in Fedex surged even more upwards, they increased by 13 percent. The shareholders of the US logistics group can look forward to a significantly higher dividend. The quarterly distribution is to be increased by more than half.

Twitter stocks increased by two percent. Tech billionaire Elon Musk is reportedly scheduled to hold an online roundtable Thursday with staff at the short-messaging service for which he has made a takeover bid. Recently he had increased his efforts to keep a retreat open. The point of contention is the number of spam and fake Twitter accounts.

Boeing shares were at the top of the Dow index with a premium of 1.6 percent. The aircraft manufacturer received fewer orders in May than in April. However, the share price had already collapsed by more than 40 percent in this stock market year./bek/he

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AXC0308 2022-06-14/20:04

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