NEW YORK (dpa-AFX) – The US stock exchanges slipped into the red on Monday after an initial stabilization. After the price slump in the previous week, nervousness remained high. New statements from central bankers fueled investors’ fears of further significant interest rate hikes by the US Federal Reserve in the fight against high inflation and an associated economic slump.
The leading index Dow Jones Industrial (Dow Jones 30 Industrial) was briefly turned into profit in early trading and recently fell by 0.95 percent to 29,310.68 points. The stock market barometer had meanwhile dropped to its lowest level since the beginning of the year.
The market-wide S&P 500 fell 0.75 percent to 3665.41 points. The NASDAQ 100 technology index slipped slightly to 11,304.73 points.
“We are in a dark period,” wrote Ed Yardeni, president of the analyst firm of the same name. Dark clouds were gathering for the US economy as the latest data pointed to a pronounced economic slowdown. “And the risks of a full-blown recession appear to be increasing, too.”
At the beginning of the week, growth worries once again fueled important currency watchdogs. For example, according to Susan Collins, Chair of the Boston Regional Reserve Bank, an additional streamlining of the monetary policy needed to contain stubbornly high inflation. She warned that the process could lead to job losses. Atlanta Fed President Raphael Bostic said the Federal Reserve still has a long way to go to control inflation.
In the Dow, only the shares of the retailer Walmart, which are considered to be little sensitive to the economy, held up and rose by half a percent. At the end of the index, shares in the insurer Travelers lost more than three percent. Like other papers in the industry, they suffered from the fact that an ever-increasing tropical storm was heading for the state of Florida. Storm Ian is expected to become a hurricane on Monday and continue to gain strength thereafter. Correspondingly high losses are expected, which may have to be borne by the insurers.
Meanwhile, shares in casino and resort operator Las Vegas Sands have soared by more than 12 percent. The Macau government had previously announced that it would reopen the gambling paradise to tourists from November. Like mainland China, the Chinese special administrative region follows a strict zero-Covid policy with numerous restrictions./la/he