–
On Wednesday, the US markets got a short-lived upswing just after the Fed announcement came the same evening. Thereafter, the three leading indices fell sharply. When the trading day was over, it shone red at both the S&P and Dow Jones on Wednesday, while the technology-heavy Nasdaq ended almost unchanged.
On Thursday, the opening was positive, but the unrest quickly took over, even though we do not see the same violent effects as earlier in the week. This is what it looked like at the main indices at 7.20 pm Norwegian time:
- The broad S&P 500 index was down 0.54 percent.
- The industry-heavy Dow Jones index down 0.02 percent.
- The Nasdaq Technology Index fell 1.40 percent.
Electric car and battery manufacturer Tesla is among Thursday’s big losers, and the share plunged over 11.55 percent. Tesla presented record results on Wednesday night, but even this does not impress investors.
Tighter monetary policy
On Wednesday at eight o’clock Norwegian time, all eyes were on the US Federal Reserve (Fed). Then came a statement that laid the groundwork for how tight monetary policy in the states will be in the future, and the message was clear:
–
There will be further cuts in support purchases from the central bank and interest rates will rise soon, probably as early as March. Fed chief Jerome Powell also did not want to rule out interest rate hikes at every Fomc meeting in the future, should it be necessary.
– Important conditions for a rise in interest rates have all along been that both the inflation and the labor market outlook should justify a rise. As is well known, inflation is far above target, and the new wording from the Fed is that the labor market is now also strong, writes chief economist Marius Gonsholt Hov in a morning report from Handelsbanken.
Even though the US indices received a “boost” shortly after the announcement, it turned around quickly.
– The market again prices a non-trivial opportunity for a larger rise in March, and a total of a clear overweight probability for as many as five interest rate increases this year. The interest rate on the American ten-year-old is also up by 5-6 points, and is now trading around the 1.83 level, Hov writes further.
Tesla delivered record results
The electric car manufacturer Telsa presented record results for the fourth quarter after the stock exchange closed on Wednesday.
Equity analysts had estimated that the company would report a $ 2.36 earnings per share, and total revenue of $ 16.6 billion, according to CNBC. The electric car manufacturer lived up to this expectation to a very high degree until and when the company reported a turnover of as much as 17.7 billion dollars.
Despite record results – the Tesla share fell sharply shortly after the presentation, before gradually recovering and waking up to around zero just over an hour after the report was presented. On Thursday, the Tesla share falls from the stock market opening, and is down well over three percent just minutes after trading began.
On the other hand, fast food giant McDonald’s results for the fourth quarter were lower than expectations on Wall Street. The report was presented on Thursday and showed that the burger chain had a turnover of 6.01 billion dollars. according to CNBC expected turnover was 6.03 billion. According to the company, increased costs and prices have made profits smaller.
On Thursday, the McDonalds share is down just under one percent right after the stock market opens. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
–
