ROUNDUP / Aktien New York conclusion: the slowdown continues – fear of a decision on interest rates ()

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 hit its lowest level since November 2020 and eventually lost 4.60%. up to 11,288.32 points

The all-market S&P 500 closed at the lowest level since March 2021 with a negative 3.88%. at 3,749.63 points Compared to the record high in January, this also represents a decline of well over 20 percent, meaning the stock barometer is signaling a bear market by the usual definition. The leading Dow Jones Industrial index ended up losing 2.79 percent to 30,516.74 points. At times it was at the lowest level since February 2021 – the recovery in the second half of May died out.

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 with a price loss of almost five and a half percent. According to media reports, in conflict with the EU competition authorities, the world’s largest online retailer offered to limit the use of data of buyers of verbs and improve the visibility of competitors’ products on the platform.

Tesla papers it lost more than seven percent, although another big American company, the electric car maker, announced a stock split to make its stock cheaper for small investors. Technology billionaire Elon Musk announced on Friday after the US market closed that the board of directors would agree to a three-to-one split if shareholders approve it at the upcoming annual general meeting. Tesla announced in March that it was planning a split. But it was not clear in what proportion. Even the price increase by the Canadian bank RBC, which now recommends the stock as “Outperform”, did not help the price at the beginning of the week.

Even worse than Amazon and Tesla were cryptocurrency stocks, which were also fined. Shares of the Coinbase cryptocurrency trading platform fell almost eleven and a half percent. At Silvergate Capital – Silvergate Bank holding company, which is heavily involved in cryptocurrencies – shareholders had to deal with an almost 17 percent price loss. Actions by the software producer Microstrategy who invested reserves in the Bitcoin cryptocurrency, lost a quarter.

Prologis Actions fell seven and a half percent after real estate firm announced it was merging with competitor Duke Realty agree to buy it – the scope of the transaction by means of a share swap, including debt assumption, is approximately USD 26 billion. Duke’s stock rose one percent.

Euro The decline continued: in trade in New York, the single currency recently fell to USD 1.0412 and thus lost significantly for the third consecutive day. The European Central Bank (ECB) previously set the reference rate at $ 1.0455 (Friday: 1.0578); the dollar thus cost 0.9565 (0.9454) euros.

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 —