Home » News » Stocks New York end: Slightly lower – banks more skeptical about US stocks | 09/08/21

Stocks New York end: Slightly lower – banks more skeptical about US stocks | 09/08/21

NEW YORK (awp international) – The upward trend is getting a bit thinner for the US stock market. The Wall Street and Nasdaq indices posted losses on Wednesday. Bank analysts are now a little more skeptical of US stocks after their record run that put the international stock exchanges in the shade.

The leading index Dow Jones Industrial fell back below the round mark of 35,000 points at times in the middle of the week. He finished trading with minus 0.20 percent to 35,031.07 points. The market-wide S&P 500 lost 0.13 percent to 4514.07 meters. For the technology-heavy Nasdaq 100, which had only risen to a record high the day before, it was now 0.35 percent to 15,620.85 points.

The experts at Morgan Stanley had downgraded US stocks to “underweight”. Under the impression of the ongoing pandemic and the tensions surrounding inflation, bond yields and monetary policy, they referred to the currently very large risks for short-term growth. Citigroup, Credit Suisse and Bank of America also urged investors to be a little more cautious about the future outlook for the US stock market. The ratings are very high.

According to the Federal Reserve, economic growth in the USA has recently weakened somewhat. The economy grew at a moderate pace from the beginning of July to August, according to the economic report published in the evening (Beige Book). In the previous report, the Fed had spoken of moderate to robust growth. According to the Fed, the spread of the delta variant of the corona virus and, in some cases, international travel restrictions are responsible for the weakening.

The economic report did not reveal anything that the markets did not already know, commented analyst Edward Moya from broker Oanda on the publication. Once again, the report left no traces on the stock market. Wall Street has largely priced in the start of a slowdown in stimulus bond purchases, but it remains unconvinced that rates will rise anytime soon, Moya added.

Overall, investors on the US stock market preferred defensive stocks on Wednesday over cyclical stocks, i.e. companies that are more dependent on the economy. In the US leading index, the shares of the beverage manufacturer Coca-Cola were up 1.4 percent. Below the papers of the chemical company Dow lost 1.9 percent.

PayPal made a name for itself with an acquisition: The payment service provider wants to swallow the Japanese provider Paidy for 2.7 billion US dollars. The project was initially well received by investors, but the price quickly turned into the red. At the end of trading it was 2.7 percent.

The euro temporarily fell towards $ 1.18 on Wednesday. After the US market closed, the common currency was trading at $ 1.1817. The European Central Bank (ECB) had set the reference rate at 1.1827 (Tuesday: 1.1860) dollars, so the dollar had cost 0.8455 (0.8432) euros.

On the US bond market, the futures contract for ten-year Treasuries (T-Note-Future) rose 0.18 percent to 133.23 points. The yield on the ten-year federal bond fell to 1.338 percent./ajx/jha/

— By Achim Jüngling, dpa-AFX —

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