Dow Jones closes in the red
Investors continue to tremble before the Fed’s decision
06/14/2022, 10:24 p.m
For fear of rising interest rates, stockbrokers are withdrawing from risky investments such as cryptocurrencies. The rest of Wall Street is also still nervous. The price pressure in the USA is not abating. The big winner is the parcel delivery company FedEx.
More investors are pulling out of Wall Street after the sell-off at the start of the week. The US Standard Value Index Dow Jones and the broad one S&P 500 marked the lowest level for about one and a half years with 30,364.83 and 3735.48 points respectively. The tech-heavy one Nasdaq was initially listed at 10,828.35 points, as low as it was almost two years ago, but then worked its way up to the plus. “Investors are nervous,” said portfolio manager Paul Nolte of wealth manager Kingsview.
Nobody wants to lean too much out of the window before the Fed’s interest rate decision, as there is a possibility that it will raise the key rate by 0.75 instead of the signaled 0.5 percentage points. These speculations would be underpinned by the almost eleven percent persistently high rise in producer prices, said Naeem Aslam, chief market analyst at brokerage house AvaTrade.
Against this background, the dollar index, which tracks the rate against major currencies, fell as much as 0.4 percent to hit 105.48 points for the second straight day of a 19-1/2-year high. At the same time, investors sold US government bonds again. That pushed the yield on 10-year T-Bonds to an 11-year high of 3.456 percent.
Cryptocurrencies were sold again. Bitcoin and Ethereum at times fell by more than ten percent. At 22,197 and 1,074 dollars, they were listed as low as rarely. “Fear and uncertainty are huge,” said portfolio manager Thomas Altmann from the investment advisor QC Partners. “Anything that involves any kind of risk is sold.” On the raw material markets, on the other hand, the price of the crude oil variety rose STI by one percent to $118.54 per barrel (159 liters). The failure of Russian deliveries cannot be compensated for, said analyst Jeffrey Halley from brokerage house Oanda. Many producing countries invested too little to expand their production capacities.
One of the favorites in the US stock market Oracle, which posted a large price jump. The software group had announced quarterly earnings that exceeded market expectations. The outlook for the cloud business also surprised positively, praised analyst Derrick Wood from asset manager Cowen. Thanks to the accelerated growth, the stock still has room for improvement. Oracle titles then rose by more than ten percent. The shares of FedEx With an increase of more than 14 percent, the biggest daily gain for almost 36 years beckoned.