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NEW YORK (dpa-AFX) – Trading on the US stock exchanges was also characterized by nervous fluctuations on Tuesday. As on the previous day, trading started with investors fleeing the risk. The Dow Jones Industrial took an early discount of more than two percent supported by well-received quarterly figures from some index members. In the end, however, there was again a thin minus of 0.19 percent on the course board with 34,297.73 points.
Investors’ nervousness, which has been noticeable for days, ahead of the US Federal Reserve’s interest rate decision expected on Wednesday, continued to make itself felt on the broader market and among technology stocks. The market-wide S&P 500 lost 1.22 percent to 4356.45 points. The technology-heavy Nasdaq 100 remains particularly badly hit , which fell by 2.48 percent to 14,149.12 points.
According to stockbrokers, the big question is how the Fed will manage the balancing act of fighting high inflation and at the same time protecting the financial markets from imbalances. Goldman Sachs strategists are now warning of the risk of an interest rate-related growth shock. The prospect of rising interest rates has long been viewed as a problem, particularly for heavily indebted companies in the technology sector.
In the Dow, it went to the top of the index for American Express stocks
by almost nine percent. The credit card group convinced in the fourth quarter with a strong jump in sales and profits, which exceeded expectations according to the experts from Evercore ISI.
But also the papers from IBM closed comfortably in the profit zone with 5.7 percent after good figures. Strong demand for cloud software and IT services had brought the IT group the largest increase in sales in years. Analyst Mirko Maier from LBBW also saw the numbers above expectations here.
The consumer goods and pharmaceuticals group Johnson & Johnson also had convincing results with a leap in sales and profits in the past year. Analyst Matt Miksic from Credit Suisse praised the outlook for 2022 in particular, which was above expectations. The titles gained 2.9 percent.
Oil stocks were also in demand in the wake of rising oil prices. chevrons were among the biggest gainers on the Dow, up 4.3 percent. Commodity analyst Carsten Fritsch from Commerzbank did not see a correction that took place the day before as a sign of a trend reversal.
The Netflix remain on the Nasdaq stock market, which is slipping again
stocks a symbol of the recent weakness in the technology stocks concentrated there. On Tuesday they fell 5.4 percent to a good $366, but remained within the pronounced fluctuation range of the previous day. They were trading close to the $350 mark for the first time since the early phase of the corona pandemic.
Nvidia stock meanwhile shaped the picture in the still weak chip sector with a discount of 4.5 percent. According to insiders, the graphics card specialist no longer expects to take over the chip designer Arm because the regulatory hurdles are too high. Bernstein Research analyst Stacy Rasgon said the deal was a great deal.
The papers of the conglomerate General Electric got on the broader market clearly under pressure at six percent. The numbers once again scared investors away, the price approached the interim low before Christmas. A disappointing sales development was seen on the market as a setback as far as the realignment under CEO Larry Culp is concerned.
The Euro recovered from an interim low since the pre-Christmas period. Most recently, it was trading just above the $1.13 mark at $1.1304. The European Central Bank (ECB) had set the reference rate at 1.1268 (Monday: 1.1304) dollars. The dollar thus cost 0.8875 (0.8846) euros.
In the context of the fluctuating financial markets, US government bonds were unable to make any further gains. The futures contract for ten-year Treasuries (T-Note Future) recently fell by 0.30 percent to 128.14 points. In return, the yield on ten-year government bonds rose to 1.78 percent./tih/he
— By Timo Hausdorf, dpa-AFX —
ISIN US2605661048 US6311011026 US78378X1072
AXC0336 2022-01-25/22:32
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