Equities New York Outlook: Reluctance to receive monetary policy signals from the Fed

NEW YORK (dpa-AFX) – Investors on the US stock exchanges are eagerly awaiting statements from the US Federal Reserve (Fed) on monetary policy on Wednesday and are therefore likely to hold back on buying shares for the time being. Because in the midst of a recovering economy, concerns about rising capital market rates are currently growing. The broker IG estimated the Dow Jones Industrial around 45 minutes before the start with plus 0.15 percent to 32,875 points. For the technology selection index Nasdaq 100, IG signals a drop of 1.1 percent to 13,008 points.

Fed President Jerome Powell must take away investors’ fear of inflation without abandoning expansionary monetary policy. Portfolio manager Thomas Altmann from QC Partners spoke of a “special significance” that the Fed statements should be given this evening. At the same time, however, he assumes that no figure should be given up to which the Fed could tolerate a further rise in interest rates on the bond market.

In the meantime, yields are picking up again: ten-year government bonds climbed to 1.66 percent and reached a high for a year. The yield on 30-year bonds even rose to 2.419 percent, its highest level since November 2019.

Among the individual stocks in the Dow and the Nasdaq 100, however, it should remain quite calm. By a little more than 14 percent, on the other hand, the shares of Plug Power went down before the trading day. The manufacturer of fuel cells has to correct several annual financial statements due to incorrect bookings.

Meanwhile, the Onconova Therapeutics share went up 11 percent during the pre-trading session. Market observers say that recently, similar to Gamestop, penny stocks from the biotech sector have also been mentioned frequently on the online platform Reddit and thus driven upwards. / Ck / mis

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