NEW YORK (dpa-AFX) – The leading American Dow Jones Industrial index
extended his last losses on Wednesday. Recession fears increased after the Labor Department reported surprisingly high consumer prices for June. The development of the situation argues for further significant interest rate hikes by the US Federal Reserve to combat inflation. Even a one percentage point hike by the Canadian central bank in the middle of the week now seems possible. However, the data did not change the fundamental expectations that the Fed will be able to quickly and firmly continue the course it started.
Against this background, the stock market was able to absorb inflation data relatively well. Ultimately, the Dow only fell 0.67 percent to 30,772.79 points after losing around 1.5 percent in early trading. For the general-market S&P 500
after short forays into the profit zone, it finally fell by 0.45 percent. up to 3801.78 points Nasdaq 100 Technology Selection Index lost 0.14 percent. up to 11 728.53 points
Consumer prices rose 9.1 percent year on year in June. This is the highest value in over 40 years. This increases pressure on the Fed to raise interest rates sharply. However, higher interest rates make consumer loans and corporate investments more expensive, and therefore may significantly weaken economic activity.
“June’s data on consumer prices did not alleviate the Fed’s concerns about inflation,” wrote Johannes Mayr, chief economist at asset manager Eyb & Wallwit. In addition, concerns about a recession have increased in the market. Because the pressure on the economy has already increased significantly and will continue to grow – due to the significant loss of purchasing power and the already significant tightening of financing conditions.
Looking at individual values, airline stocks, which were still very strong the day before, came under a lot of pressure. Investors reacted angrily to the fact that Delta Air Lines was worse than expected in the second quarter and expects high operating costs by the end of the year. Because on Tuesday American Airlines took it
with good business results ensured a good mood in the industry. Now Delta Air Lines is down 4.5 percent among the weakest stocks in the S&P 500. American Airlines shares gave back some of the daily gains, down 3.1 percent.
Twitter calls on tech billionaire Elon Musk in court to implement agreed website takeover. The company has filed a lawsuit in the state of Delaware. The competent court may order the takeover to be completed, as is also expressly requested by Twitter. Shares rose by almost eight percent.
The Netflix papers were one of the other tech actions
by a good one percent. The company opted for a future version of Microsoft’s ad-supported streaming service as a technology partner. In April, Netflix announced that it would develop a cheaper, ad-supported version due to declining customer numbers. Microsoft lost 0.4 percent.
Euro it was last traded at $ 1.0056. When trading, the single currency was worth less than the dollar for the first time in twenty years, given high inflation in the US. The European Central Bank has set the reference rate at $ 1.0067 (Tuesday: $ 1.0042). The dollar thus cost 0.9933 (0.9958) euros.
In the US bond market, the T-Note Future rose by 0.20%. to 118.89 points and thus benefited from ongoing fears of a recession. In return, the yield on 10-year government bonds fell to 2.92% / l / he
— Lutz Alexander, dpa-AFX —
ISIN US2605661048 US6311011026 US78378X1072
AXC0340 2022-07-13 / 22: 33
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