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NEW YORK (dpa-AFX) – Resentment emerged on Wednesday following renewed investors’ concerns about a recession in the US stock markets. The trading was nervous in the early hours, but then the New York indices stabilized at a level slightly above the previous day’s closing prices. Slightly more pronounced gains saw the Dow Jones Industrial (Dow Jones 30 Industrial) index two hours before the end, which rose by 0.45 percent to 31,086.14 points.
After a strong slump the day before, especially in the technology sector, the Nasdaq was not able to clearly recoup the losses. The NASDAQ 100 selection index, which has already gained 0.6 percent. and lost 0.9 percent. The market-wide S&P 500 index hit a level just above the break-even point with 3,822.74 points.
A day earlier, weakening consumer confidence re-fueled fears that the US might fall into recession, also under the influence of rising interest rates. On Wednesday, it was reported that the US economy contracted slightly more than previously estimated at 1.6% in the first quarter. Private consumption figures have been significantly revised downwards.
The market still fears that fighting high inflation with rising interest rates will threaten economic development. It hasn’t changed much that US Federal Reserve Chairman Jerome Powell expressed his confidence on Wednesday. The US economy is in good shape to fight inflation while maintaining a healthy labor market, he told the ECB.
“Central banks stick to a very fine line and dictate market sentiment to some extent,” said Barclays equity strategist Emmanuel Cau. “The market seems to be caught in a tug of war between hoping we are near the peak of inflation and interest rates and the challenge of an economic slowdown and possible recession.”
In terms of individual values, the electric car manufacturer Tesla’s shares fell by 2.9 percent. According to circles, the producer could lose more jobs due to the current economic crisis. Consequently, the 200 employees who are currently working on the autopilot project in California are expected to leave.
After a relatively strong streak in recent times, FedEx investors were no longer able to enjoy the new medium-term goals. Shares of the US logistics group fell 2.2 percent, although it plans to continue growing for the next three years. In addition, profitability is to be further increased.
The bad news came from retailer Bed Bath & Beyond (Bed BathBeyond), which posted a larger-than-expected loss for the first fiscal quarter. It was rumored in the market that newspapers have recently become the subject of speculation among private investors organizing themselves on the Internet. The hope for rapidly rising prices changes suddenly. With prices falling by almost 23 percent, they hit their lowest price level since April 2020.
Carnival shareholders, who have recently been able to enjoy the revival in prices, also experienced strong setback. On Wednesday, the carrier realized profits, the course in New York accelerated by almost 15 percent. Morgan Stanley analysts warned that stocks could face a worthless scenario should cruise demand experience another demand shock.
A positive feature was the Amazon (Amazon) titles, which increased by 1.8%. JPMorgan analyst Douglas Anmuth lowered its assumptions for US internet stocks and thus Amazon’s target price to $ 175 due to current consumer concerns. For an expert, the online store remains one of the “best ideas” in the industry. The new target promises 60% growth potential.
As a driver, the internet giant also referred to a study by analyst Redburn, which sees the spun off Amazon’s cloud division as an attractive option for the future. The study speculates that it could soon be worth $ 3 trillion. This would be almost three times the current stock market value of the entire group.
Food company General Mills also saw a 5.6 percent increase in prices. Shares surged after the company said price increases and easing supply chain disruptions would soon boost sales again