Fed money injections are not available: US stock exchanges close in the red

The interest rate decision of the US Federal Reserve continues to have an impact on Wall Street. Experts complain that many questions have remained open. Meanwhile, the oil price is increasing as OPEC wants to stick to its course. Among the companies, GE shares are one of the day's winners.

The US Federal Reserve's temporary waiver of additional economic aid and labor market data that fell short of expectations are affecting Wall Street. The US Standard Values ​​Index Dow Jones closed 0.5 percent lower to 27,901 points. The technology-heavy one Nasdaq fell 1.3 percent to 10,910 points. The broad one S&P 500 lost 0.8 percent to 3357 points.

The Fed wants to keep the key interest rate close to zero until inflation can moderately exceed the target of two percent for some time and full employment is achieved again. According to the new economic projections, interest rates are likely to remain unchanged until at least 2023. Vincent Reinhart, chief economist at the asset manager Mellon, criticized the answer to the question of how the Fed intends to achieve its goals. "Like the Wizard of Oz, he would prefer that no one tries to look behind the curtain, but rather trust everyone that the Fed will do its job."

"The Fed is at its wits end and equity investors are finally realizing it," said Greg Swenson, co-founder of the investment bank Brigg Macadam. Interest rates are low and the central bank is already buying large amounts of securities. "There is little left to support the economic recovery or to cushion failures in the event of unexpected economic weakness."

Opec holds on to the conveyor brake

The US type of crude oil WTI In contrast, the price rose by a good two percent to 41.04 dollars per barrel (159 liters). According to internal documents, "Opec +", which includes the members of the export cartel as well as other producing countries such as Russia, intends to hold on to the subsidy brake in the current scope. They also urged those members who had exceeded their quotas in the past few months to cut production accordingly. Therefore, a lower offer can be expected, said analyst Phil Flynn from the brokerage house Price Futures.

At the company stood General Electric (GE) in the spotlight. The shares of the Siemens competitor rose by more than four percent. Thanks to savings worth billions, company boss Larry Culp promised a positive cash flow for the second half of the year. He is planning the same for 2021. The shares of the world's largest cruise operator Carnival on the other hand fell by 1.3 percent. The subsidiary P&O does not want to start offering travel again until early 2021 at the earliest. In the wake of Carnival, the papers of competitors Royal Caribbean and Norwegian lost up to 1.4 percent.