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NEW YORK (dpa-AFX) – Investors’ renewed fears of a recession were followed by restraint on the US stock exchanges on Wednesday. After a nervous start, the New York stock indices settled at a relatively stable level. The biggest gainers came from the Dow Jones Industrial (Dow Jones 30 Industrial), which rose 0.27 percent to 31,029.31 points.
Trading on the Nasdaq also calmed down after initial spikes. The NASDAQ 100 selection index, which slipped particularly heavily the day before, crossed the finish line 0.18 percent higher at 11,658.26 points. The broader S&P 500, however, ended 0.07 percent lower at 3818.83 points.
The day before, dwindling consumer confidence had fueled concerns again that the USA could slide into a recession, also under the influence of rising interest rates. On Wednesday it was reported that the US economy contracted slightly more than previously estimated at an annualized 1.6 percent in the first quarter. The figures for private consumption were revised significantly downwards.
The market continued to be concerned that fighting high inflation with rising interest rates would endanger economic development. Nothing changed when the head of the US Federal Reserve made a statement on Wednesday. The US economy is in a state to get stricter monetary policy able to cope with, said Jerome Powell at an ECB forum. Investors took this as a signal that inflation would continue to take precedence.
“Central banks walk a very fine line and to some extent dictate market sentiment,” said Barclays equity strategist Emmanuel Cau. “It seems the market is caught in a tug-of-war between the hope that we are nearing the peak of inflation and interest rates and the challenge of a slowing economy and a possible recession.”
Among the individual values, the shares of the electric car manufacturer Tesla slipped by 1.8 percent after a peak minus of 4.5 percent. According to circles, the manufacturer could cut more jobs because of the current economic crisis. Accordingly, 200 employees who are currently working on an autopilot project in California are to leave.
After a relatively good run to a high since February, FedEx investors were no longer able to enjoy new medium-term targets. The shares of the US logistics group slipped by 2.6 percent, although it has planned further growth for the next three years. In addition, profitability is to be further increased.
Bad news came from retailer Bed Bath & Beyond (Bed BathBeyond), which reported a larger-than-expected loss for the first fiscal quarter. With a price slump of 23.6 percent, they reached the lowest price level since April 2020.
Carnival’s shareholders also experienced a strong setback, with the cruise operator’s share price plummeting 14 percent in New York. Morgan Stanley analysts warned the shares could face a worthless scenario if demand for cruises experienced another demand shock.
A positive feature were the Amazon titles (Amazon), which rose by 1.4 percent. The online retailer remains one of the “top ideas” in the Internet sector for JPMorgan analyst Douglas Anmuth. A study by the analysis company Redburn also caused a stir because it sees a spin-off of the cloud division as an attractive option for the future. The study speculates that the division could be worth almost three times the current stock market value of the entire group.
There were also price gains of 6.4 percent at the food company General Mills. Shares rose after the company said price hikes and easing supply chain disruptions would soon boost sales again.
The euro has fallen below the $1.05 mark at $1.0440 last paid. The European Central Bank had set the reference rate at 1.0517 (Tuesday: 1.0561) dollars.
US government bonds were in demand as a safe haven. The futures contract for ten-year Treasuries rose by 0.68 percent to 117.50 points. Conversely, the 10-year government bond yield fell to 3.10 percent
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