NEW YORK (dpa-AFX) – One day before the announcement of important monetary policy decisions, the interest-rate sensitive US technology stocks have expanded their recent losses. Also on this Tuesday, inflation concerns dominated market events. So the producer prices continued their soaring. In November, prices at the manufacturer level rose by a surprisingly high 9.6 percent compared to the same month last year and thus even faster than in October.
The technology-heavy Nasdaq 100 fell 1.98 percent to 15,763.75 points. Should the US Federal Reserve raise interest rates faster than expected in the coming year to fight inflation, this would hit the strongly growth-oriented technology sector particularly hard, as the financing conditions for companies could become more unfavorable.
The market-wide S&P 500 lost 1.27 percent to 4609.66 meters. The leading index Dow Jones Industrial fell 0.51 percent to 35,468.62 points.
US Federal Reserve Chairman Jerome Powell is increasingly coming under pressure because of the recent sharp rise in inflation, said market analyst Christian Henke from trading house IG. For many market participants, the US Federal Reserve could accelerate the reduction in bond purchases as early as tomorrow – despite new corona worries. This would also open up the possibility of raising key interest rates earlier than previously expected in the coming year.
Investors are also focusing on the discussion about raising the debt ceiling in the US Congress this Tuesday. A failure could hit the markets hard, believes CMC Markets analyst Jochen Stanzl.
Among the technology stocks, the shares of Tesla reacted with a price decline of more than three percent to the news that company boss Elon Musk had sold a further 934,000 Tesla papers. This means that Musk has already won a total of almost 12 million Tesla shares since he agreed to sell a tenth of his 17 percent stake in the electric car manufacturer in the course of a Twitter vote in early November.
Uber’s shares soared around four percent. Stockbrokers referred to encouraging statements by company boss Dara Khosrowshahi at an analyst event. In terms of gross bookings, the travel agent achieved a record in the last week. In the wake of this, the papers of the competitor Lyft gained almost two percent.
Terminix Global’s stocks ended their most recent downward trend and jumped back to their level at the end of September with a plus of a good 18 percent. The British pesticide manufacturer Rentokil plans to take over the US competitor. Rentokil’s shares plummeted by more than 12 percent in London. According to analysts, the new company could become a world market leader, but the purchase price is high./la/men
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