Tuesday, October 12, 2021
US stock market decline continues
Investors tremble at the new monetary policy
US central bankers believe the time has come for tighter monetary policy. Investors are therefore on their guard. The rising oil prices are also causing uncertainty on Wall Street. The reporting season that opens JPMorgan is eagerly awaited.
The upcoming reporting season and concerns about rising inflation have unsettled investors on Wall Street. The leading index Dow Jones Industrial After a mixed start, it finally fell by 0.34 percent to 34,378.34 points. Of the S&P 500 fell by 0.24 percent to 4350.65 points. For the tech-savvy Nasdaq 100 it went down 0.35 percent to 14,662.11 points.
Investors fear that rising energy prices will slow economic growth and affect company results.
In addition, according to economists, the start of reducing central bank aid is expected in November. “With all of the troubles companies are facing, there is an opportunity for more negative surprises this quarter than in previous quarters,” said Tom Martin, senior portfolio manager at asset manager Globalt Investments. Analysts expect the corporate profits of the S&P 500 companies to increase by an average of almost a third compared to the same period last year. However, statements on forecasts for the full year and beyond are eagerly awaited this quarter.
In addition, investors remained cautious because of the minutes of the last Fed meeting expected for Wednesday. According to leading US central bankers, the labor market and economy in the US are on the right track and the time for tighter monetary policy is ripe. The continued rise in the price of oil was also a thorn in the side of investors. A barrel of the sort Brent cost almost $ 84 at times, but fell back to $ 80.46 in the course of trading.
Oil producers are struggling to recover from the massive cuts during the coronavirus pandemic. Because of the drastic rise in gas prices, oil will also be increasingly used as an energy source, which will additionally fuel demand, explained stockbrokers. “The markets had the message that inflation was temporary, believed and are now questioning it,” said Sarah Hewin, economist at Standard Chartered.
Tesla celebrates success in China
The US bank stood at the individual values JPMorgan in focus, which will kick off the US quarterly reporting season on Wednesday. Your shares were 0.7 percent in the red. On the other hand, the shares of Tesla. The electric car maker delivered 56,000 vehicles from its factory in China in September. That’s more than ever since Tesla started production in Shanghai around two years ago. The shares of American Airlines gained 0.6 percent. According to preliminary calculations, the airline made a smaller loss in the third quarter than analysts had expected. The titles of the marketing software manufacturer HubSpot were particularly popular after the group introduced a digital payment function for US customers. The shares gained 16 percent.