After the euphoria of the previous day, disillusionment has spread again on Wall Street. After the clearer monetary policy direction of the US Federal Reserve (Fed) on Wednesday …
NEW YORK (dpa-AFX) – On Wall Street, after the euphoria of the previous day, disillusionment has spread again. After the clearer monetary policy direction of the US Federal Reserve (Fed) had caused great joy on Wednesday, renewed interest rate worries on Thursday put economic-sensitive technology stocks in particular under pressure. The fact that the British central bank is unexpectedly resisting high inflation and surprisingly raised its key rate for the first time in the corona pandemic caused irritation.
The technology-oriented NASDAQ 100 had to pay tribute to its previous day’s rally and dropped 2.61 percent to 15,863.94 points. In doing so, he lost a large part of the gains he had made after the Fed’s monetary policy decisions were announced in the middle of the week.
The leading index Dow Jones Industrial (Dow Jones 30 Industrial) closed 0.08 percent in the red at 35 897.64 points. The S&P 500 was down 0.87 percent to 4668.67 points.
The US Federal Reserve wants to accelerate its exit from the extremely loose monetary policy and raise interest rates more quickly in the coming year. The background to this is the high inflation, which recently marked a 39-year high. The Fed no longer sees inflation as a temporary problem.
Central banks around the world are currently weighing up how to counter the high inflation in a balanced way. On Wednesday, US investors were still betting that central bankers could take such steps without halting economic growth. On this Thursday, however, doubts grew after the interest rate decisions by the British central bank and the European Central Bank, among others. In the euro area, there is no end in sight to the low interest rates. In China, the central bank is tending towards further easing.
“While there seems to be agreement among central banks around the world when it comes to easing, there is a big gap in the way in which all those involved imagine the end of the expansive monetary policy,” wrote market analyst Jochen Stanzl from trading house CMC Markets. For the stock market, this patchwork of monetary policy is unsettling and therefore “not exactly confidence-building”.
Among the biggest winners in the S&P 500, the papers of the telecom company AT&T rose by around seven percent after an analyst comment. The recent price weakness has created an interesting opportunity for investors measured in terms of opportunities and risks, wrote the expert Simon Flannery of Bank Morgan Stanley. The expert expects many price drivers in 2022, including a merger of the subsidiary WarnerMedia with Discovery (Discovery Communications A).
Accenture’s shares soared nearly seven percent after hitting a record high in the course of trading. The consulting firm had increased its sales outlook. In contrast, the sales target of the software company Adobe Systems (Adobe) fell short of the analysts’ expectations. The expert Kirk Materne from Evercore ISI referred, among other things, to unfavorable currency effects. The shares plummeted by more than ten percent, bringing up the rear in the S&P 500.
The euro was last traded at $ 1.1332. The European Central Bank set the reference rate at 1.1336 (Wednesday: 1.1262) dollars. The dollar cost 0.8822 (0.8879) euros. US Treasuries benefited from the weak Wall Street. The futures contract for ten-year Treasuries rose 0.43 percent to 131.72 points. The yield on ten-year government bonds was 1.43 percent./la/men
— By Lutz Alexander, dpa-AFX —