US MARKET / Slight recovery – fears of recession still dominate | News

NEW YORK (Dow Jones) – Wall Street showed a modest recovery on Thursday after the mid-week sell-off. While the initial losses are largely making up, overall traffic is rather modest. Because fear of recession is still the dominant topic. Around noon local time, the Dow Jones index lost 0.5 percent to 31,320 points, following a daily low of 31,017 points. The S&P 500 index changed little, with the Nasdaq Composite gaining 1.0 percent after falling 4.7 percent the day before.

Investors fear that the US Federal Reserve’s stringent monetary tightening could push the domestic economy into recession. In addition, disappointing business data and the outlook for several large US retail companies over the past few days have clearly shown that inflation is already clearly weakening private consumption, one of the most important pillars of the US economy.

Kohl’s and BJ’s Wholesale Club, other major US retailers, released data on Thursday. Kohl clearly fell short of market expectations in the first quarter. Until the end of March, things were going quite well, but according to the management board, inflation started to be felt in April. In addition, the economic incentives that the company availed of last year have disappeared. After initial losses, the share gained 3.4%.

On the other hand, BJ’s Wholesale (+ 10.9%) did surprisingly well, mainly because the company had more fuel sales. VF Corp’s retail clothing was also announced on Thursday (-2.2%).

Pessimistic outlook causes Cisco to collapse

Cisco’s figures and forecasts (-13.7%) are seen as a bitter disappointment. In the third quarter, the turnover of the telecommunications equipment supplier was lower than expected. The company also lowered its sales forecast for the current financial year.

Moreover, the market has to process some economic data. Initial unemployment benefit applications increased last week, economists forecast a slight decline. The May Philadelphia Fed index unexpectedly plunged sharply. The leading indicator for April also showed a slight decline, while here was expected to be unchanged. Sales of existing homes in April fell by 2.4%.

Safe havens still in demand – dollar back under pressure

Concerns about the economy are driving investors to “safe havens”. In the bond market, prices are rising sharply again. The price of gold is also rising significantly.

On the other hand, the dollar, which is often sought as a safe currency in times of crisis, is once again declining significantly. Observers explain this by fear of an economic slowdown in the US. The dollar index drops 1.1 percent.

The oil market is very volatile again. Fears of an economic slowdown pushed WTI and Brent prices down by a good 4 percent over the year. However, it is now growing again. The participants point to a slight revival on the stock exchange as the reason.

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INDEX last + / -% absolute + / -% YTD

DJIA 31 320.16 -0.5% -169.91 -13.8%

S&P 500 3 925.53 + 0.0% 1.85 -17.6%

Nasdaq Comp. 11 531.70 + 1.0% 113.54 -26.3%

Nasdaq-100 12,030.42 + 0.9% 102.11 -26.3%

US bonds

Term Profitability Bp to VT Profitability VT +/- Bp YTD

2 years 2.63 -5.0 2.68 189.8

5 years 2.85 -4.6 2.90 159.0

7 years 2.86 -5.9 2.92 142.0

10 years 2.83 -6.2 2.89 131.8

30 years 3.03 -3.4 3.07 113.2

FOREX last +/-% Th 9:27 Wed 17:20% YTD

EUR / USD 1.0584 + 1.2% 1.0473 1.0500 -6.9%

EUR / JPY 135.04 + 0.6% 134.38 134.79 + 3.2%

EUR / CHF 1.0300 -0.4% 1.0289 1.0377 -0.7%

EUR / GBP 0.8463 -0.2% 0.8480 0.8464 + 0.7%

USD / JPY 127.59 -0.6% 128.37 128.36 + 10.8%

GBP / USD 1.2506 + 1.3% 1.2350 1.2404 -7.6%

USD / CNH (offshore) 6.7229 -0.8% 6.7832 6.7681 + 5.8%

Bitcoin

BTC / USD 30 295.59 + 4.0% 29 211.40 28 941.58 -34.5%

ROHL last VT-Settl. +/-% +/- USD% YTD

WTI / Nymex 110.20 109.59 + 0.6% 0.61 + 50.2%

Brent / ICE 110.34 109.11 + 1.1% 1.23 + 45.2%

METALS last day before +/-% +/- USD% YTD

Gold (spot) 1,842.20 1,816.61 + 1.4% +25.59 + 0.7%

Silver (Spot) 21.86 21.42 + 2.1% +0.44 -6.2%

Platinum (Spot) 959.90 938.90 + 2.2% +21.00 -1.1%

Future Copper 4.27 4.18 + 2.3% +0.10 -4.0%

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Contact the author: maerkte.de@dowjones.com

DJG / ros / cln

(END) Dow Jones Newswires

May 19, 2022 at 12:11 PM EST (4:11 PM GMT)

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