Dow Jones closes in the red
Russia sanctions unsettle US investors
04/05/2022 10:33 p.m
The expectation of further sanctions by the West against Russia is causing uncertainty on Wall Street. The tech values in particular are falling significantly – with the exception of Twitter with new supervisory board member Elon Musk.
The fear of new sanctions in the Ukraine war pushed Wall Street into the red. As before in Europe, the fact that the EU Commission wants to propose import bans on coal, wood, cement, rubber and chemicals as well as caviar and vodka with a value of up to nine billion euros a year caused a stir. The US also tightened its measures: the US Treasury Department prevented Russia from making payments of more than $600 million due to its creditors from the foreign exchange reserves held at US banks.
On Wall Street, he has Dow Jones given in. The leading US index lost 0.8 percent to 34,641 points. The tech-heavy one Nasdaq fell 2.3 percent to 14,204 points and the broad S&P 500 lost 1.3 percent to 4525 points.
US Federal Reserve Vice Chairman Lael Brainard told a Minneapolis regional Fed event that reducing inflationary pressures was “a priority”. Brainard announced a “series” of rate hikes. Higher interest rates lead to rising financing costs, especially for high-growth tech companies. From May, Brainard also wants to start with a rapid reduction in the total assets, which had massively expanded during the corona pandemic.
Standing again Twitter in the focus of investors: Tesla boss Elon Musk is to move into the supervisory board of the short message service. It was announced on Monday that Musk holds a 9.2 percent stake in Twitter, making it the largest single shareholder. Twitter shares rose another 2 percent after gaining 27 percent the previous day. Twitter founder Jack Dorsey praised Musk in a tweet: “He is a passionate supporter and fierce critic of our service, which is exactly what we need at Twitter and on the board to grow stronger over the long term.” TeslaStocks, on the other hand, lost 4.7 percent.
Carnival-Share certificates rose 2.5 percent after the cruise line announced the best booking week in its history. Investors in Europe didn’t want to take any risks either.
the dax closed 0.7 percent lower on Tuesday at 14,424 points. the EuroStoxx50 lost 0.8 percent to 3917 points. According to a Russian media report, Russia and Ukraine have meanwhile continued their negotiations. The Interfax news agency reported, citing the Russian Foreign Ministry, that intensive discussions were being held via video link.