Euro jumps above dollar parity
Google and Microsoft tear down tech giants
10/26/2022 10:37 p.m
On the US stock exchanges, investors are concerned about the business figures from Microsoft and Google. In the wake of the tech giants, the papers of Amazon and Apple are also losing significantly. The credit card provider Visa, on the other hand, is in a good mood.
Declines in profits at Microsoft and Google parent Alphabet weighed on technology stocks on US stock markets on Wednesday. The index of the technology exchange Nasdaq dropped 2.0 percent to 10,970 points after temporarily climbing into positive territory. The broader one S&P 500 lost 0.7 percent to 3830 points. Of the Dow Jones Index closed with little change at 31,838 positions.
After the market closed, the Facebook mother Meta also presented disappointing results. Apple will follow later, Amazon on Thursday. “These companies are really important indicators of advertising and the flow of goods and services,” said Fahad Kamal, chief investment officer at Kleinwort Hambros. “If advertising growth slows, it will increase fears of a drop in profits.” Apple, Microsoft, Alphabet, Amazon, Netflix and Meta are the six big tech companies that account for 23 percent of the value in the S&P 500.
After the Bank of Canada delivered a lower-than-expected 50 basis point hike in interest rates and expectations for slower hikes increased, the US 10-year Treasury yield fell to a weekly low of 4.005 percent. Many investors suspect that the European Central Bank and the Fed will raise interest rates for the last time at their upcoming meetings.
Dollar rate is crumbling
At the same time, these expectations weighed on the US currency. Of the dollar index, which tracks the rate against major currencies, fell 1.1 percent to 109.75 points. The euro bounced above dollar parity for the first time in a month, gaining as much to reach $1.0083.
Cost on the commodity market oil slightly more in volatile trading; US light oil was up 3.3 percent at $88.19 a barrel (159 liters). On the one hand, according to insiders, inventories in the USA rose more than expected, which put pressure on the price – on the other hand, the shortage of supply after OPEC cuts and the weak dollar drove prices up.
Visa and Boeing on the rise
Microsoft earned less in the first fiscal quarter of 2022/23 and recorded weaker revenue growth due to weaker PC demand. The stock lost 7.7 percent. For the alphabetshares were down 9.1 percent. The weakening environment in the market for digital advertising is causing problems for the Google parent company. Growth slowed for the fifth straight quarter. Amazon and Apple lost almost 4.0 and 1.9 percent respectively in their wake. The Facebook mother Meta lost 5.6 percent. After the quarterly figures were presented, the papers fell by a further 12 percent. Spotify crashed 13 percent after disappointing numbers.
Texas Instruments earned and traded more in the third quarter than Wall Street was expecting, but disappointed with its fourth-quarter outlook. The chipmaker’s stock fell 2.6 percent. The payment card provider Visas earned and traded more than expected in its fourth fiscal quarter. The share gained 4.6 percent.
Boeing fell by almost nine percent. The group had warned that its recovery from the economic crisis would take longer than expected. In what is expected to be the last major IPO of the year, investors clamored for the Intel subsidiary Mobileye. The shares of the specialist for self-driving cars rose around 40 percent to $ 29.60.