NEW YORK (dpa-AFX) – Fears of higher interest rates also weighed on the US stock exchanges on Monday. The strong labor market report from last Friday is still having an effect, said stockbrokers. With a view to the interest-sensitive technology stocks in particular, concerns continued that the US Federal Reserve could take more restrictive action than previously thought against the high inflation given the robust job market. Geopolitical tensions between the United States and China also weighed on sentiment after a suspected spy balloon was shot down off the US coast by the American military.
The leading index Dow Jones Industrial fell by 0.10 percent to 33,891.02 points. In the short and medium term, the chart for the Wall Street Index could cloud over, as a look at the 21- and 50-day moving average reveals.
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The market-wide S&P 500 fell 0.61 percent to 4111.08 points on Monday. The tech-heavy Nasdaq 100 lost 0.87 percent to 12,464.52 points. Its multi-week rally had already ended on Friday in the face of disappointing quarterly reports from Amazon and Alphabet.
With regard to the individual stocks, a takeover bid in the mining sector attracted attention. The gold mine operator Newmont Corp wants to incorporate the Australian gold prospector Newcrest Mining for 17 billion US dollars. The Newmont shares lost four and a half percent.
Meanwhile, an expert with more detailed knowledge of the planned transaction believes it is possible that competitors such as Canada’s Barrick Gold could consider making a counter-offer. The shares of this company put on something.
Dell’s shares fell 3 percent. The PC manufacturer wants to cut thousands of jobs in view of the weakness in the PC market. He joined the wave of layoffs at tech companies. In the gloomy environment, the news also had a negative impact on the chip manufacturer Intel, whose shares fell by more than five percent as the clear bottom performer in the Dow.
Energizer Holdings shares are down nearly 5 percent. The manufacturer of batteries had disappointed with its results for the first business quarter. Tyson Foods investors also suffered a loss of almost five percent. The grocer suffered in the current quarter from falling beef and chicken prices, which hurt profits.
Bucking the trend, Tesla shares gained two and a half percent, continuing their upward trend since the beginning of the year. The electric car maker had raised the prices for its Model Y in the US shortly before the weekend after the US government expanded tax incentives.
The euro suffered from the increased interest rate expectations of the Fed and was last listed at 1.0726 US dollars. The European Central Bank set the reference rate at 1.0776 (Friday: 1.0937) dollars. The dollar thus cost 0.9280 (0.9143) euros.
Against this background, US government bonds also came under pressure. Most recently, the futures contract for ten-year bonds (T-Note Future) fell by 0.93 percent to 113.36 points. In return, the yield on ten-year government bonds rose to 3.65 percent./la/he
— By Lutz Alexander, dpa-AFX —
