The most important stock market barometers fell again on Thursday on the US stock market.
Wall Street’s strong rally on Wednesday proved to be a flash in the pan. On Thursday, robust economic data once again fueled concerns that key interest rates are likely to rise further in the fight against high inflation. The number of weekly initial applications for unemployment benefits fell surprisingly and significantly in the past week. As a result, the most important stock market barometers on the US stock market fell again, with interest-sensitive technology stocks coming under particularly strong pressure.
The leading index Dow Jones Industrial fell by 1.54 percent to 29,225.61 points. For the market-wide S
Wall Street was up Wednesday after six straight days of losses. Equities had regained momentum after the UK’s monetary authorities, the Bank of England, unexpectedly intervened against the sharp rise in interest rates on the domestic bond markets.
In contrast, several central bankers from the USA have recently spoken out and signaled further interest rate hikes. The US Federal Reserve must raise rates further to fight inflation, said Loretta Mester, Chair of the Cleveland Regional Reserve Bank on Thursday. Interest rates are not yet at a level where they dampen economic development.
Among the biggest losers in the Dow, shares in iPhone maker Apple fell about 5 percent, falling back to mid-July levels. A skeptical study by Bank of America proved to be a burden. The papers would have served as a kind of safe haven in the currently difficult environment, but in the meantime opportunities and risks are more or less balanced again, wrote analyst Wamsi Mohan. The expert referred to the slowdown in the area of content and services as well as the rather meager iPhone demand, which indicated falling consumer spending.
Almost all other Dow stocks also recorded losses. At the top of the Dow, the shares of the insurer Travelers managed a plus of a good one percent. Investors were relieved that Hurricane Ian had weakened as it made its way through Florida. Meteorologists downgraded the hurricane to a tropical storm.
in the s
The euro continued to recover on the foreign exchange market and was last listed at 0.9800 US dollars. Inflationary pressures persist in the eurozone, making another rate hike of 0.75 percentage points very likely at the next European Central Bank (ECB) interest rate meeting in late October. The ECB had set the reference rate at 0.9706 (Wednesday: 0.9565) dollars. The dollar thus cost 1.0302 (1.0455) euros.
On the US bond market, the futures contract for ten-year Treasuries (T-Note future) fell by 0.54 percent to 112.25 points in anticipation of further interest rate hikes. In contrast, the yield for trend-setting paper with a term of ten years rose to 3.78 percent.
