Dow Jones closes in the red: investors have a firm grip on interest rate concerns

Dow Jones closes in the red
Interest rate concerns have investors firmly in their grip

Manchester United’s prices post gains – stockbrokers snap up amid speculation that Qatari investors are buying the football club. But things are not going well for all titles. The trembling before the next interest rate decision by the US Federal Reserve continues.

Wall Street investors are once again concerned that interest rates will continue to rise. The Dow Jones Index lost 0.61 percent to 33,949.01 points. The broader one S&P 500 fell 1.11 percent to 4117.86 points, the technology exchange index Nasdaq fell by 1.68 percent to 11,910.52 points. Investors were concerned about the latest interest rate statements from US central bankers. Fed Chair Jerome Powell said on Tuesday he expected 2023 to be a year of “significant falls in inflation”. However, the fight against inflation will also take some time.

“Underlying concerns about how high rates need to go are bubbling up again,” said Susannah Streeter, market analyst at Hargreaves Lansdown. The President of the New York Federal Reserve, John Williams, locates the peak in the key interest rate at a level of 5 to 5.25 percent. Markets are currently betting that it will rise over 5 percent in May before peaking at 5.18 percent by July.

Microsoft 266.73

shares of Microsoft fell 0.31 percent. The group wants to upgrade its Bing web search with an even more powerful variant of the artificial intelligence (AI) ChatGPT from Open AI and thus attack market leader Google. This in turn wants to integrate its AI software “Bard” into its search engine. However, in an online Google ad, Bard gave an incorrect answer, which investors apparently took as a setback.

The papers of the Google mother alphabet lost more than seven percent. Investors reached out after a media report about a possible takeover of Manchester United by investors from Qatar in the shares of the football club. Stocks rose 10.54 percent. According to a report by the British newspaper “Daily Mail”, Qatari investors want to make a purchase offer for the first division soccer team.

The multi-billion dollar acquisition of CVS Health was well received. The shares of the healthcare group and pharmacy operator rose by 3.54 percent. CVS pays around 9.5 billion dollars for the operator of medical first aid centers Oak Street Health and enters a new business area.

New York Times Company
New York Times Company 41:13

In addition, the stock exchanges once again had to digest a flood of company balance sheets. Surprisingly good prospects from Fortinet dragged shares of the software security firm higher. The company’s guidance for the quarter and full year beat stock market expectations, which lifted the shares 10.9%.

investors of New York Times looked optimistically to the future after the increased number of subscribers. The shares climbed 12.07 percent. A lowering of the forecast for the current year and a bleak outlook for 2024 from those specializing in designer fashion Capri Holdings frightened investors. Shares fell 23.58 percent, the lowest in three months. Sales at Michael Kors, Capri’s biggest brand, fell 4.5 percent in the Americas in the third quarter to $777 million.

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