Dow Jones closes in positive territory
Fear of interest rates dominates the New York trading floor
September 8, 2023, 10:28 p.m
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There is a high probability that the Fed will raise interest rates again. This upsets investors. However, there is good news for Apple. After the tech company’s stocks flew out of the depots due to a China ban, the shares are gradually recovering.
At the end of a week of losses, US investors moved cautiously forward. The Dow Jones Index the standard values and the broader one S&P 500 were quoted 0.2 and 0.14 percent higher at 34,576.59 and 4,457.49 points respectively by midday. The technology stock market index Nasdaq gained 0.09 percent to 13,761.53 points. Heavyweight growth stocks in particular moved into portfolios, spurred on by falling bond interest rates: Microsoft gained 1.32 percent.
Reports of China’s expanded iPhone restrictions have caused a stir in recent days and contributed to a loss of around $200 billion in stock market value Apple guided. Today, however, the shares of the tech group started to recover and gained 0.35 percent after losing 6.4 percent in the previous two days. Several Wall Street analysts said the selloff was overblown. The loss in sales for Apple would likely be small due to the phone’s popularity in China.
Investors also kept a low profile with regard to the approaching central bank meetings. At the European Central Bank, which meets on Thursday, stock market traders currently estimate the probability that it will forego a further interest rate increase at around 63 percent.
Decline in US jobless claims
Although the US Federal Reserve Bank will not discuss its monetary policy until the following week, the topic is already dominating the New York trading floor. Investors will therefore try to draw conclusions about interest rate developments from next week’s consumer prices and retail sales on Wednesday. Stronger-than-expected services activity data and a decline in weekly jobless claims had fueled speculation that the Federal Reserve will keep interest rates high for an extended period of time.
“This month of September has so far followed the path of a negative interest rate outlook, meaning the Fed will likely raise interest rates further to counter stubborn U.S. economic growth,” said Peter Andersen, founder of Andersen Capital Management. According to the CME Fed Watch Tool, traders see a 93 percent chance that interest rates will remain at current levels in September, while pricing in around a 55 percent chance of a pause in rate hikes at the November meeting.
Rent the Runway loses
Among the favorites on the stock market were Smith & Wesson Brands after strong quarterly figures. The arms manufacturer’s shares rose 10.85 percent. The bottom line was that sales increased to $114.2 million compared to $84.4 million in the same period last year. Earnings per share rose to 13 cents from 11 cents.
Rent the Runway However, lowered its annual targets and thus alienated investors. Shares fell 27.93 percent. The e-commerce platform, where you can rent, subscribe to or buy designer clothing and accessories, now only expects sales of at least $296.4 million for 2023, down from $320 to $330 million previously. The estimates for the third quarter, at $72 to 74 million, are also below analyst expectations of an average of $84.7 million.