NEW YORK (awp international) – After the long weekend due to the holiday, Wall Street will probably report back with significant losses on Tuesday. The Dow Jones Industrial was expected by broker IG about an hour before opening 1.1 percent lower at 30,750 points.
It had recently recovered somewhat from its most recent low since the end of 2020 at 29,653 points. Hopes for a more moderate turnaround in interest rates in the USA were primarily responsible. However, fears of inflation and recession continue to plague investors. A 20-year low in the euro against the US dollar also shows how much, given the weak picture of the economy in the euro zone. The dollar is only benefiting from its reputation as a relatively safe haven and the pace of the US Federal Reserve’s rate hikes.
Because the experts at the investment bank JPMorgan see the economic prospects in the USA as meager as those in Western Europe and have lowered their expectations significantly in each case. According to the experts, the decisive factor as to whether weak growth will ultimately turn into a recession is above all the reaction of companies. At the moment they assume that they will falter but not fall.
According to broker IG, the Nasdaq 100 is likely to slip 1.5 percent to 11,416 points. Its most recent low since November 2020 was 11,037 points.
Among the individual stocks, investors should keep an eye on Biontech, which lost slightly above average pre-market. The Tübingen biotech company Curevac filed a lawsuit in Germany against the corona vaccine manufacturer and two subsidiaries. The company speaks of patent infringement. It’s about the Comirnaty vaccine from Biontech/Pfizer (Germany/USA)./ag/mis