Cancellation of interest break
Fed Chair Powell sends US stock markets down
11/02/2022 10:07 p.m
Wall Street experienced a turbulent trading day after the Fed’s interest rate decision – and the outlook from Fed boss Powell. The mood finally changes, the indices give way. There are still some jewels among the individual values - such as the Tinder operator Match.
On Wall Street, that took care of it US Federal Reserve for strong ups and downs. After the expected interest rate hike of 75 basis points to the new range of 3.75 to 4.00 percent, US investors initially boldly grabbed shares. However, when Fed Chair Jerome Powell explained that it was still far too early to discuss an interest rate pause, the mood changed and securities were thrown out of the portfolios. The reason for this is that some economists fear that the US economy will run out of steam as a result of the interest rate hikes and that a recession will break out.
At the close of the market it was Dow Jones Index the standard values 1.55 percent lower at 32,148 points. The broader one S&P 500 lost 2.5 percent and dropped to 3760 points. The index of the technology exchange Nasdaq lost 3.36 percent and fell to 10,523 points.
As expected, the US Federal Reserve increased interest rates by three-quarters of a percentage point, said Commerzbank analyst Bernd Weidensteiner. In addition, the Fed was very nuanced. “On the one hand, she indicated a slower pace for the next steps.” On the other hand, a pause in interest rates is not an issue and a higher target level for interest rates is emerging than was thought at the last meeting.
Tinder app appeals to investors
In the case of the individual values, ringing cash registers came from the Tinder dating app for investors in the operating company match good on. Match shares gained 4.2 percent. The increasing popularity of paid premium subscriptions to the app boosted group sales more than expected.
shares of Paramount dived by more than twelve percent. A decline in advertising revenue gave the company quarterly revenue below market expectations. The cosmetics company Estee Lauder has to put make-up on its annual targets because of the burdens caused by the corona restrictions in the important market of China and the strong US dollar. The shares lost more than eight percent.
Investors’ concerns about possible financing problems Tupperware caused shares to plummet by around 42 percent to a two-and-a-half-year low. According to its own statements, the provider of fresh food boxes is currently negotiating with creditors about its credit conditions. According to the group, there are “no assurances” that this will be successful. Tupperware is suffering from the fall in demand from China due to the corona restrictions and the poor consumer mood in Europe.