Dow Jones closes in the red
Uncertain investors rush to government bonds
08/21/2023 10:29 p.m
What will Federal Reserve Chairman Jerome Powell say about interest rate peaks at the Jackson Hole Fed conference? This question makes investors nervous. To be on the safe side, buy US bonds. The big winner among the individual titles is Nvidia.
After the recent losses, US investors cautiously returned to Wall Street at the start of the week. Before the eagerly awaited Fed conference in Jackson Hole, however, the mood remained nervous. The Dow Jonesindex returned initial price gains and was down 0.11 percent at 34,463.69 points. The broader one S&P500 increased by 0.69 percent to 4399.77 points. With an increase of 1.56 percent to 13,497.59 points, the technology-heavy NasdaqIndex to regain ground.
Headwinds came from a sell-off in bonds, which weighed on 10-year yields US Bonds up to 4.34 percent. Fresh signs of a robust US economy have recently fueled expectations that the US Federal Reserve could keep interest rates high for an extended period of time.
Investors therefore increasingly focused on the US central bank conference in Jackson Hole, from which investors are hoping for signals for the further course of monetary policy from US central bank chief Jerome Powell. “People are getting worried about the bond sell-off and are looking forward to Powell and what he has to say about peak interest rates later this week,” said Seema Shah, chief strategist at Principal Global Investors.
Meanwhile, the Chinese central bank tried to support the sluggish economy by cutting interest rates. However, this fell short of the analysts’ expectations, as the five-year interest rate, which is particularly important for mortgages and thus for the troubled real estate sector, surprisingly remained unchanged. “The People’s Bank of China’s small stimulus stimulus to the struggling economy has proved largely disappointing given the scale of challenges looming across sectors, but it has given investors hope that there could be more,” said analyst Susannah Streeter from brokerage house Hargreaves Lansdown.
Goldman Sachs wants to refocus on the super-rich
Meanwhile, the individual values moved up Nvidia in the focus of investors. The stocks of the US chip manufacturer rose by 8.47 percent in the run-up to the balance sheet presentation on Wednesday. Stockbrokers expect that the group will present quarterly sales that are above the forecasts of analysts. This could fuel the rally around the winners of the spread of artificial intelligence again, stockbrokers speculated.
After the recent price losses, the shares of Tesla asked again. The title of the US electric car manufacturer attracted more than 7.33 percent. A positive analyst comment from the brokerage firm Baird Equity Research, which included the share in its list of “best ideas”, provided momentum.
The US investment bank, on the other hand, came under pressure Goldman Sachs, which wants to rethink its strategy and is considering selling a division in order to refocus on serving the super-rich. The titles fell 0.88 percent. Goldman Sachs has failed to make its business with high net worth individuals outside of its core ultra-rich clientele profitable, said Stephen Biggar, an analyst at Argus Research. “This is part of the overall restructuring of the company, back to its roots.”