Dow Jones closes in the red
Fear of interest rates has investors firmly in its grip
08/17/2023, 10:13 p.m
The US Federal Reserve is trying to stall the economy, but is still battling inflation. It is quite possible that she will raise the key interest rate again, which displeases the stock market traders. Beijing’s announcement that it will take measures to protect the Chinese economy gives hope.
Uncertainty over future Federal Reserve policy is making Wall Street investors nervous. The Dow Jones Index the standard values reduced their gains from the start of trading and were down 0.84 percent at 34,474.83 points. The broader one S&P 500 lost 0.77 percent to 4370.36 points. The index of the technology exchange Nasdaq fell 1.17 percent to 13,316.93 jobs. Most policymakers continued to prioritize fighting inflation, according to transcripts of the Fed’s July interest rate meeting, released after Europe closed on Wednesday. Some participants pointed to the risks for the economy.
The Fed is trying to curb inflation by raising interest rates without stalling the economy. “The minutes look very outdated. There is talk of a gradual slowdown in the US economy, but if you look at the data we are not even in a slowdown,” said Samy Chaar, chief economist at Swiss private bank Lombard Odier.
As a result, the latest economic data from the USA created a bad mood. In its fight against inflation, the Fed also wants to cool down the overheated labor market by raising interest rates. The number of initial jobless claims in the United States is falling. Last week, 239,000 US citizens applied for federal aid, up from 248,000 the week before. Robust economic data and fresh signs of inflationary pressures once again prompted investors to dump government bonds. In return for the falling prices, yields rose. The ten year olds US Bonds The stock returned 4.293 percent, up from 4.258 percent on Wednesday, its highest level since October 2022. If it rises above 4.338 percent at the time, it would be at a 16-year high.
Cisco is one of the big winners
Meanwhile, hopes of more stimulus measures in China fueled oil prices. The North Sea crude oil variety Brent and the light US variety STI increased in price by 0.37 percent and 0.86 percent to 83.81 and 80.06 dollars per barrel (159 liters). The Chinese monetary authorities want to adjust their real estate policy. A string of bad news from the important sector over the past few days has pointed to a looming crisis.
In the individual values fell CVS Health by 8.13 percent. The US health insurer Blue Shield of California wants to limit its cooperation with the diversified health care group, sending the entire sector into a tailspin. The investors agreed with the individual stocks Cisco a. The share of the network supplier gained 3.39 percent. Despite a disappointing sales forecast, CEO Chuck Robbins pointed to large market share gains in the past quarter. “We think the results are looking good,” the Jefferies experts wrote. “While orders are declining as the supply chain normalizes. Luckily, Cisco has a large backlog that should help it get through this period.”
The shares of were also in demand ball, which increased by 1.58 percent. The British defense group BAE Systems wants to buy the aerospace business of the American conglomerate for around 5.55 billion dollars in cash. Ball, which was previously active in two sectors, is now concentrating on the business with aluminum bottles and cans for beverages and consumer goods.