Daily winnings given back
US investors are still nibbling on Fed messages
September 22, 2023, 11:23 p.m
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Has the decline on Wall Street stopped? After the significant losses of the last few days, prices are only looking up – but when the closing bell rings, the indices have slipped back into the red. Some Chinese companies are bucking the trend.
The US stock markets fell further on Friday. While the indices were clearly up for most of the day, the gains all melted away by the end of trading. According to traders, the US Federal Reserve’s interest rate continues to weigh on sentiment. The Dow Jones Index the standard values closed 0.3 percent lower at 33,396 points. The broader one S&P 500 lost 0.2 percent to 4320 points and the technology exchange index Nasdaq 0.1 percent to 13,211 jobs.
For the week as a whole, the Dow lost 1.9 percent, the S&P lost 2.9 percent and the Nasdaq lost 3.6 percent. “This week was about some of the Fed’s messaging clashing with overly optimistic stock investors,” said Zachary Hill of Horizon Investments in Charlotte. Some investors have been assuming for a long time that interest rates have reached their peak. But this week it became clear “that the Fed doesn’t believe we’re there yet.” The price movements this week were about digesting this reality.” The Federal Reserve left the key monetary policy rate in the range of 5.25 to 5.50 percent on Wednesday. However, Fed Chairman Jerome Powell made it clear that that the monetary authorities are considering an increase of a quarter of a percentage point for this year. In addition, any interest rate cuts in 2024 are likely to be significantly smaller than previously announced.
The Dollar index gained 0.2 percent to 105,613 points. The Euro lost almost 0.2 percent to $ 1.0641. The Crude oil prices continued to rise. The North Sea Brent variety and the light US WTI variety were each slightly higher at $93.64 and $90.36 per barrel (159 liters), respectively, and thus remained at a comparatively high level.
Ford gives investors hope
Among other things, the individual values were asked for ford. The car manufacturer’s shares climbed by 1.9 percent. Thanks to progress in talks with the UAW union, the company is expected to be spared from an escalation of the recent strikes. However, according to the UAW, the competitor is less successful in collective bargaining General Motors (GM). GM shares fell 0.4 percent.
New hopes for an economic recovery in China boosted US-listed shares of Chinese companies. PDD, JD.com, Li car and Baidu won between two and four percent. “In recent weeks there have been a lot of political measures in the People’s Republic to support the real estate and financial sectors,” commented Kelly Chung, manager at asset manager Value Partners. The experts at the US investment bank Goldman Sachs also pointed to positive surprises in the Chinese economic data for August.
Investors also agreed Activision Blizzard a. The shares climbed by 1.7 percent. After around a year and a half, Microsoft has probably overcome the last major hurdle on the way to the largest takeover in the video game industry. The British antitrust regulator signaled on Friday that it wanted to withdraw its original veto against the $69 billion purchase of the developer of computer games such as “Call of Duty” and “World of Warcraft.”