Automaker on the decline
US investors hunker down ahead of rate hike
01/30/2023 11:04 p.m
Wall Street starts an eventful week with losses. Tech stocks in particular are going down. Car manufacturers are under pressure because of the price war started by Tesla.
Wall Street investors are cashing in ahead of the Federal Reserve’s expected rate hike this week. After the rally at the beginning of the year, technology stocks were at the top of the sales lists at the start of the week. These had recently caught up significantly as cooling inflation and a slowdown in the economy gave investors hope for a slower pace of interest rate hikes. the Dow Jones Index the standard values closed 0.8 percent lower at 33,717 points. The tech-heavy one Nasdaq fell two percent to 11,393 points. The broad one S&P 500 lost 1.3 percent to 4017 points.
Stockbrokers expect the US Federal Reserve to raise interest rates by 25 basis points on Wednesday. The European Central Bank (ECB) and the Bank of England are each expecting interest rate hikes of 50 basis points on Thursday. “I find it remarkable that for the first time in a long time the ECB is likely to be more aggressive than the Fed,” said Commerzbank analyst Ulrich Leuchtmann. At the start of the central bank week, investors in Europe were also on guard. the dax went 0.2 percent weaker with 15,126 points from trading.
In the individual values frightened ford investors with a price cut for its electric-powered Mustang. The price war for electric cars fueled by Tesla is thus gaining momentum. In response to the world’s largest electric car maker, Ford slashed prices on its Mustang Mach-E SUV by up to $5,900. Ford shares fell nearly 3 percent. The titles of Tesla lose more than six percent. car companies like General Motors and Rivian Automotive lost three to nine percent.
Meanwhile, a defeat in court in the legal dispute over the allegations made that his talc products such as baby powder are carcinogenic continued Johnson&Johnson to. Shares in the US pharmaceutical and consumer goods company fell almost 4 percent after a US appeals court refused to settle the multi-billion dollar lawsuit by bankrupting its LTL Management division. The group had formed LTL and spun off the liabilities associated with its talc-based products and bankrupted the business. The appeals court denied the Chapter 11 LTL application because the entity was created solely to gain entry into the bankruptcy system. J&J said it would appeal the verdict, reiterating its talc products are safe.
Chip maker shares also fell. Advanced Micro DevicesNvidia, intel and Qualcomm each fell between around one and six percent. “There is a slowdown in chip demand and there is concern that this will translate into earnings after a strong rally late last year and early January,” said Ipek Ozkardeskaya, an analyst at Swissquote Bank.