ROUNDUP / New York stocks close: indices stabilized after yesterday’s decline | News

NEW YORK (dpa-AFX) – Investors’ renewed fears of a recession slumped US stock markets to a halt on Wednesday. After a nervous start, the New York stock indices stabilized at a fairly stable level. The biggest gains were made by the Dow Jones Industrial index (Dow Jones 30 Industrial), which rose by 0.27 percent to 31,029.31 points.

Trade on the Nasdaq also calmed down after initial jumps. The NASDAQ 100 selection index, which fell sharply the previous day, crossed the finish line 0.18% higher to reach 11,658.26 points. However, the broader S&P 500 index ended by 0.07 percent. lower, reaching 3,818.83 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 feared that fighting high inflation with rising interest rates would threaten economic development. Nothing changed when the head of the US Federal Reserve released a statement on Wednesday. The US economy is able to tighten Monetary policy able to handle it, said Jerome Powell at the ECB. Investors took this as a signal that inflation would continue to take precedence.

“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 share of the electric car manufacturer Tesla decreased by 1.8%. after the maximum minus 4.5 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 good run to a high from February, FedEx investors were no longer able to enjoy the new medium-term targets. The shares of the US logistics group fell by 2.6%, 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. With prices down 23.6 percent, they hit their lowest price level since April 2020.

Carnival shareholders also experienced strong setback, with the carrier’s share price plunging 14 percent in New York City. Morgan Stanley analysts warned that stocks could face a worthless scenario should cruise demand experience another demand shock.

On a positive note, Amazon (Amazon) shares were up 1.4%. The internet merchant remains one of the “best ideas” in the internet sector for JPMorgan analyst Douglas Anmuth. The research by analyst Redburn has also caused a stir as it sees the spun off of the cloud division as an attractive option for the future. The study speculates that the split could be worth nearly three times the current stock market value of the entire group.

Food company General Mills also reported a 6.4 percent increase in prices. Shares surged after the company said price increases and easing supply chain disruptions would soon boost sales again.

The euro fell below $ 1.05, to the level of the last $ 1.0440 paid. The European Central Bank set the reference rate at 1.0517 (Tuesday: 1.0561) dollars.

US government bonds were sought as a safe haven. The ten-year government bond futures contract rose 0.68 percent to 117.50 points. Conversely, the yield on 10-year government bonds fell to 3.10 percent

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