Nike is flying out of the depots
Inflation sends Wall Street plummeting
April 10, 2024, 10:58 p.m
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Inflation that was higher than expected triggered massive selling on the US stock exchanges. Hopes of interest rate reductions are being priced out and market interest rates are rising significantly. Increased oil prices are further fueling inflation concerns.
The surprisingly strong rise in US inflation is causing a bad mood on Wall Street. The Dow Jones Index the standard values closed 1.1 percent lower at 38,461 points in the evening. The technology-heavy one Nasdaq fell 0.8 percent to 16,170 points. The broad one S&P 500 lost 0.9 percent to 5160 points.
Inflation in the USA rose sharply again in March. Consumer prices rose by 3.5 percent in March compared to the same month last year, after 3.2 percent in February. “The US Federal Reserve’s dream of falling interest rates may not come true for the time being. Market participants are reacting disappointedly and are showing this with new sales impulses,” commented Salah-Eddine Bouhmidi, manager at broker IG. On the futures markets, the probability of a change in interest rates by the US Federal Reserve at its meetings in June and July is estimated at just under 20 percent and 45 percent. Before the data was published, it was 55 and 70 percent. Investors still see falling interest rates as a result of further Fed decisions as more likely.
China faces downgrade
The investors also separated from US government bonds. The yield on ten-year bonds rose in response to the falling price to 4.515 from 4.348 percent. That also flew out of the depots gold. The yellow precious metal fell by a good half a percent to $2,338 per troy ounce. The dollar index, meanwhile, climbed by a good one percent to 105.29 points. In return, the euro lost just as much to $1.0728.
However, the threat left few traces on the stock exchanges China downgrade by the rating agency Fitch. The agency maintained China’s rating at “A+” but lowered its outlook to “negative.” This assessment by Fitch and previously Moody’s is largely based on the current economic situation, commented Chi Lo, strategist at BNP Paribas Asset Management. “That means as China’s economy recovers, they will change their rating outlook to positive.”
The Oil prices Meanwhile, they went looking for direction. The North Sea Brent variety and the US WTI variety each cost around one percent more than on Tuesday at $90.53 and $86.28 per barrel (159 liters). Concerns that a possible expansion of the war in the Middle East could endanger oil supplies caused oil prices to rise slightly again after a brief setback. Just over a week after the shelling of the Iranian embassy compound in Damascus, Israel and the important oil producer Iran are threatening each other with attacks. However, a surprisingly strong increase in US inventories limited the gains.
Nike under pressure
For the individual values, there was a partnership with the advertising group PubMatic Roblox stock Boost. The shares of the US online gaming platform climbed by 1.8 percent. The goal of the partnership is to enable the sale of interactive video ads in real time, said PubMatic with. The advertising technology specialist’s shares fell by a good three percent.
The investors also agreed Alibaba a. The Chinese online retailer’s US-listed stocks rose 2.2 percent. Founder Jack Ma praised the division of Alibaba into six divisions. This allows the company to make decisions more flexibly, Ma wrote in an internal forum for employees.
However, people flew out of the depots Nike. The shares of the world’s largest sporting goods manufacturer fell 2.2 percent to $ 89.00. Rivals title Lululemon and Under Armour lost about the same amount. Analysts at the major British bank HSBC have lowered the price target for Nike from $115 to $100. Immediately after the supply chain crisis, the sector is now struggling with a global collapse in demand, it said.