NEW YORK (dpa-AFX) – US stock markets continued to fall on Monday amid rising interest rates and fears of a recession. Two days before the US Federal Reserve’s decision on interest rates, market participants feared that the unexpectedly high inflation could induce monetary authorities to increase interest rates even more. Tech stocks in particular have come under pressure once again: their Nasdaq 100 pick index
The all-market S&P 500
There is nervousness “because apart from the dynamics of inflation, there is also a decline in consumption. This would hit the economy twice and lead to an economic slowdown, said Andreas Lipkow of Comdirect. In addition, the resurgent Covid issue in China works on investors’ nerves.
“In New York, there is (also) concern that large-cap technology companies like Tesla and Apple, which have not technically yet formed a reversal, will also turn,” added market analyst Jochen Stanzl. from the CMC Markets broker.
In turn, market strategists from the American bank JPMorgan associated with Marko Kolanovi believe that the fall in prices in the last few days is an exaggeration. The significant losses and “sell-off” of cryptocurrencies are already more than adequately priced against the risk of a recession. Experts count on a positive surprise from the currency watchdogs and a revival in prices in the second half of the year. This is supported by sustained strong consumption, freeing the economy from the constraints of the corona pandemic and economic stimulus in China.
They advise investors to focus primarily on equities that are currently relatively low valued, such as particularly innovative companies, companies with a strong exposure to China, smaller companies and biotechnology.
Amazon stood out among the already battered technological campaigns on Monday
Even worse than Amazon and Tesla were cryptocurrency stocks, which were also fined. Shares of the Coinbase cryptocurrency trading platform
Meanwhile, interest rates in the US bond market continued to rise strongly. Recently, the yield on ten-year government bonds was 3.37%, the highest level in more than eleven years. In return, the T-Note Future contracted by 1.43% to 115.14 points / gl/he
— Gerold Löhle, dpa-AFX —