NEW YORK (dpa-AFX) – The US stock exchanges continued on Monday with significant losses from the pitch-black previous week. Investors remained very nervous, as shown by violent fluctuations over the course of the year. There are many reasons for withdrawing: high inflation and the associated expectation that interest rates will rise more quickly is considered the most important factor. But also because of the omicron infection wave, a hitherto mixed reporting season and the Ukraine conflict, risks are currently being reduced, according to the market.
The Dow Jones Industrial, which had already lost 4.6 percent in the course of the previous week, has meanwhile dropped to 33,150 points, its lowest level since the beginning of April 2021. Most recently, however, it stabilized at 33,789.19 points. This was still a minus of 1.39 percent. The market-wide S&P 500 also lost 1.53 percent to 4331.09 points.
As of late, technology stocks remained under particular pressure. The Nasdaq 100, which is shaped by these, recently lost 1.58 percent to 14,210.40 points, reaching its lowest level in six months. With almost 13 percent, it has already lost significantly more this year than the Dow with around 7 percent.
US monetary policy remains at the heart of the debate among investors. At the first central bank meeting of this year on Wednesday, no key rate changes are likely to be announced as part of the decision. The capital market strategist Jürgen Molnar from Robomarkets then expects more clarity about when and at what speed the central bank wants to turn off the money supply to the markets “in the fight against inflation.”
Among the individual values, the shares of the aircraft manufacturer Boeing were sold by investors in the Dow, as the minus of 2.6 percent shows. Otherwise, the correction under the tech stocks, which have been strong for a long time, continued before results are expected from various large industry groups such as Microsoft and Tesla in the course of the week. Their papers were again negative with discounts of 2.1 and 4.5 percent respectively.
Netflix titles continued their Friday slump due to a particularly disappointing outlook with minus 5.6 percent. The streaming provider, whose business had been boosted during lockdown times, is gradually losing the last price gains since the outbreak of the corona pandemic in spring 2020. The titles of the media group Walt Disney, which is also celebrating success with a streaming offer, came back a further 2.1 percent as a Dow member.
On the positive side, the focus was on Kohl’s stock, which jumped 33 percent. The retail chain confirmed the receipt of several letters from those interested in taking over the company. As the Bloomberg news agency reported at the weekend, citing circles, a group of financial investors is offering around nine billion US dollars.
Otherwise positive exceptions were rare, in the Dow there were only a few stocks with price gains. The shares of the DIY chain Home Depot led the table in the leading index with an increase of 1.1 percent. They probably benefited from general industry fantasies in the wake of Kohl’s euphoria.
On the Nasdaq, the shares of Peloton, another former corona beneficiary, rose by 7.9 percent. This was preceded by a report on a letter from an activist shareholder demanding the resignation of the company boss and a sale of the fitness equipment group.
While Netflix and Disney remained under severe pressure, Fox Corporation stock posted gains of 1.2 percent. These were recommended for purchase on Monday by the major Swiss bank UBS. Analyst John Hodulik considers the media group to be better positioned than many of its competitors in the current situation and praised the attractive relationship between opportunities and risks./tih/he
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