Dow Jones closes in the red
Fear of interest rates drives investors to sell
04/11/2022, 11:17 p.m
Marketers are worried about a further increase in inflation. As the US Federal Reserve announces an about-face in its fiscal policy, many sell off their securities. Government bonds are becoming more popular.
The fear of further rising prices and rapidly rising interest rates still has the US stock exchanges firmly in its grip. Of the Dow Jones Index the standard values closed 1.2 percent lower on Monday at 34,308 points. The tech-heavy one Nasdaq fell 2.2 percent to 13,411 points. The broad one S&P 500 lost 1.7 percent to 4412 points. Investors were eagerly awaiting the inflation figures due on Tuesday.
In view of the drastically increased energy costs due to the Ukraine war, experts expected US consumer prices to rise by 8.5 percent in March. The US Federal Reserve recently signaled that it wanted to raise interest rates aggressively in order to bring rising inflation under control. Faced with this prospect, US investors dumped bonds from their portfolios again.
In return, the yield on ten-year Treasuries rose to as much as 2.784 percent, the highest level in more than three years. In terms of individual values, shares in the electric car manufacturer Tesla fell by 4.8 percent.
Musk will not join Twitter’s board of directors
In China, car sales fell overall in March due to the country’s restrictions to contain the renewed outbreak of corona. Stocks of US-listed Chinese rivals Li car and Xpeng fell by up to 2.4 percent.
Bucking the general market trend, shares in the short message service rose in price Twitter by 1.7 percent. Contrary to initial statements, the new Twitter main shareholder Elon Musk does not want to move into the company’s board of directors after all. This was announced by the chairman of the board, Parag Agrawal.
Musk’s appointment was supposed to take effect on Saturday. But “Elon announced that same morning that he would no longer be joining the board,” Agrawal wrote on the short message service. “I think this is for the best.” Were on the sales lists of stockbrokers Nvidia. Shares of the US chip and technology group fell 5.2 percent after a broker downgrade. Despite the positive election result in France, Europe’s investors are not “en Marche” at the start of the week. The Dax lost 0.6 percent on Monday to 14,192 points. The EuroStoxx50 fell 0.5 percent to 3839 points.