Oil prices weigh on airlines
Inflation data is dampening the mood for US investors
September 13, 2023, 10:57 p.m
The US Federal Reserve’s policy of raising interest rates is unlikely to end any time soon. US investors see current consumer prices as an indicator of this. Because these are higher in August than analysts expected. Oil prices in particular are causing headaches on the financial markets.
Sentiment on Wall Street remains subdued given the high inflation in the USA. Investors only touched stocks with pointed fingers. The Dow Jones Index the standard values closed 0.2 percent lower 34,575 points. The technology-heavy one Nasdaq On the other hand, it moved up 0.3 percent 13,813 points before. The broad one S&P 500 put up 0.1 percent 4467 points to.
The Consumer prices in the USA rose by 3.7 percent in August, after 3.2 percent in July, slightly stronger than analysts expected. The core rate, which is closely monitored by the central bank and excludes the volatile prices for energy and food, fell as expected to 4.3 from 4.7 percent in July.
Stock marketers did not see this as a strong signal of an end Fed interest rate hike policy. “We expect the Federal Open Market Committee to pause this month but raise rates one last time in November and keep rates high through mid-2024, barring a recession, which we don’t expect.” ” said Sam Stovall, chief investment strategist at CFRA Research.
Especially the recent increase in Oil prices had fueled inflation concerns on the financial markets. Three US airlines American Airlines, Spirit Airlines and Frontier Group Holdings lowered their third-quarter margin forecasts later in the day due to higher fuel costs. The airline shares fell by up to 9.2 percent.
The papers from Moderna However, prices rose by 3.2 percent after the company reported progress in the study of its mRNA-based flu vaccine. Moderna is also reducing production of its Covid-19 vaccine to adapt to lower demand following the pandemic.
You can read about how trading went on the Frankfurt trading floor in our stock market day.
The shares of Ford engine advanced by 1.5 percent. The carmaker had previously announced that it would double production of its hybrid pickup trucks in 2024. In Frankfurt am Main, the Dax closed 0.4 percent lower at 15,654 points, and the EuroStoxx also fell by 0.4 percent to 4,223 points.