NEW YORK (awp international) – The US stock exchanges’ attempt to recover in late trading the day before is unlikely to continue on Tuesday. It seems as if investors are just waiting for periods of rising prices in order to sell again quickly. The correction on the day before the eagerly awaited central bank decision is therefore likely to continue.
The leading index Dow Jones Industrial is threatened with slipping below the round mark of 34,000 points, the broker IG estimated it 0.82 percent lower to 34,084 points just under an hour before the starting bell. There is also no relief in sight for the technology-heavy Nasdaq 100, which is expected to be 2.1 percent weaker.
Goldman Sachs strategists are now warning of an interest rate shock. What is meant by this is an excessively sharp tightening of monetary policy to curb inflation, which, according to the experts, could trigger a growth shock and weigh on the stock market. The risk of this is quite high, also because the inflationary pressure is currently much greater than at the beginning of the 1980s, it said. For highly indebted companies, for example in the technology sector, rising interest rates can become a problem. Inflation is also weighing on profit margins in the form of higher wages and raw material costs.
The price of the Dow Group initially reacted very positively to the quarterly figures presented by IBM the evening before after the stock market closed, but the plus finally melted down to 0.3 percent. Strong demand for cloud software and IT services had brought IBM the largest increase in sales in years.
American Express also impressed with a strong jump in sales and profits. But here, too, the papers contained the high pre-market price increase to 0.4 percent most recently. According to quarterly figures, the shares of the pharmaceutical company Johnson & Johnson fell by half a percent.
Nvidia fell by more than four percent in the weak tech sector before the market. According to insiders, graphics card specialist Nvidia no longer expects to take over chip designer Arm. The reason for this is the ongoing headwind from competition authorities, as reported by the Bloomberg news agency, citing people familiar with the matter.
The telecoms group Verizon, the conglomerate General Electric (GE) and the armaments group Raytheon Technologies are also eyeing quarterly figures on Tuesday. After the market close, the software giant Microsoft opens the books./ajx/mis
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