Dow Jones at annual low
Wall Street continues to slide
09/27/2022, 10:29 p.m
Initially, things are looking pretty good on Wall Street. There are signs of a slight recovery over the course of the day. But shortly before the end it is clear: The Dow Jones does not make it out of the red. US investors are too worried about the recession.
There is no recovery in sight on Wall Street. Of the Dow Jones fell 0.4 percent and closed in the red at 29.134 points. Previously, the leading US index only peeked into the profit zone briefly before the mood changed again. In the meantime, it fell by 0.6 percent and, at 29,071 points, is as low as it was almost two years ago. The day before, the index had fallen to an annual low and also entered “bear market mode” – i.e. from its recent high lost more than 20 percent. The S&P 500 also lost 0.2 percent. For that he could Nasdaq composite slightly around 0.25 percent add and joined 10,829 points.
“Equities have fallen sharply in value as the Fed has aggressively raised interest rates and indicated many more rate hikes are to come. Recession fears are mounting, making stock selection significantly more difficult,” said Fiona Cincotta, senior financial markets analyst at City Index. At the moment, however, it is more of a pause in the market sell-off than the beginning of something more positive, adds the participant. “Fundamentals remain the same and a recession is becoming more likely.”
Dollar slightly lighter – oil prices rise
On the foreign exchange market, the dollar is climbing slightly after the strong upward movement. Of the dollar index changes 0.1 percent. Analysts at UBS Global Wealth Management believe the dollar is likely to remain strong for longer as markets priced in a higher interest rate hike in the US amid widespread risk aversion. The dollar should benefit from its yield advantage and safe haven function, according to UBS.
For the oil prices it is up to after the latest levies 2.5 percent up. STI had around in the past two sessions with concerns about falling demand 8 percent lost. Now the better-than-expected US economic data are providing some relief and fueling hopes of increasing oil demand. Also providing some support is an approaching hurricane in the Gulf of Mexico, which has prompted oil companies to temporarily halt production at some oil platforms.
At the bond market it goes for the returns further up, albeit at a somewhat slower pace. Initial slight losses were quickly recovered. The yield on 10-year paper is falling 3.0 basis points on 3.95 percent to. It is thus approaching the 4 percent mark that was last exceeded in 2008.
Faraday Future tighter
Place under the individual values Faraday Future around 5.9 percent to. The electric car startup has secured up to $100 million in funding after reaching an agreement with one of its largest shareholders to settle a months-long dispute over the company’s governance.
ford (up 1.3 percent) is seeking a new trial after a Georgia jury in August ordered the automaker to pay $1.7 billion in damages over an accident. Of the auto sector in the S&P 500 is the biggest gainer, up 2.7 percent.
nautilus switched in the meantime 9.8 percent. The Bowflex manufacturer had announced that a possible sale of the company was being considered. This is part of a broader review of strategic alternatives initiated by the company’s board of directors.
the Moderna-Share fell 2.1 percentt to. The European Medicines Agency EMA is reviewing the approval of a new Covid vaccine against the omicron subvariants BA.4 and BA.5.