However, oil stocks are up
US stock exchanges again with losses
08/23/2022, 10:42 p.m
The US stock markets have recently gone down slightly again – an attempt to recover has failed miserably. The uncertainty with regard to interest rate developments is too great. But there are also beneficiaries: the shares of the oil companies are doing splendidly.
A tentative recovery attempt on the US stock markets after the recent downturn has failed. Weak US economic data could continue the fear rising interest rates decrease only briefly in early trading. After a moderately friendly start, the leading index turned Dow Jones quickly back into the red – in the end it lost 0.5 percent to 32,910 points. For the broad market S&P 500 it ultimately went down by 0.2 percent to 4129 points.
The stocked with many technology titles Nasdaq 100 fared only slightly better with a drop of 0.1 percent to 12,882 points. While tech companies are often more dependent on credit to fund their growth than firms in more traditional industries, they have a lot to lose when interest rates rise. However, the stock exchange barometer has already lost 21 percent since the beginning of the year and thus significantly more than the two standard value indices.
the Business in the US private sector declined for the second month in a row in August, with the S&P Purchasing Managers’ Index falling to 45 points, well below the growth threshold of 50 points. High inflation and tighter bank lending conditions spoiled consumers’ buying mood.
There have been fears on the market for days that the US Federal Reserve could at the international central banker meeting beginning on Thursday in Jackson Hole an aggressive tone regarding others rate hikes act to get inflation under control. According to the Swiss bank Credit Suisse, investors are likely to be following the speech by Fed Chair Jerome Powell on Friday with suspense. Further monetary tightening threatens to stall the world’s largest economy, which by definition has slipped into recession for the past two quarters. Rising interest rates also tend to make equities less attractive than fixed income securities such as bonds.
Oil companies among winners
In terms of individual stocks, oil company stocks were among the winners. The papers from chevrons increased by 3.2 percent, the titles of ExxonMobil 4.2 percent. They benefited from the rise in oil prices. Saudi Arabia brought production cuts by the oil cartel Opec and its allies into play on Monday. According to insiders, while such a move is not imminent, it may be necessary if sanctions on Iran are lifted as part of the nuclear talks and additional oil comes onto the market.
On the other hand, the shares of Zoom, they lost 16.5 percent. The provider of software for video conferencing is feeling the effects of increasing competition and, after a slump in growth in the past quarter, lowered its forecasts for the full year. “Zoom remains a ‘show me’ company where the company sees great potential but the market doesn’t want to believe it,” said Rishi Jaluria, software expert at RBC Capital Markets.
Of the Euro was able to stabilize somewhat thanks to the weak US data: After another 20-year low, the common currency climbed to $0.9967. The European Central Bank had set the reference rate at 0.9927 (Monday: 1.0001) dollars; the dollar had cost 1.0074 (0.9999) euros.