The pronounced price weakness on the US technology exchange NASDAQ spread to the European markets on Wednesday.
The a href=”https://www.finanzen.net/index/euro_stoxx_technology” target=”_blank” rel=”noopener”>EURO STOXX 600 Technology recently lost 1.8 percent and was down 3.6 percent The weakest sector so far in the current stock market year. In 2023, the sector index had increased by almost a third. In the USA, the NASDAQ 100 fell 1.7 percent on Tuesday to its lowest level since mid-December. The index reached a record high over the Christmas period.
“In the USA, the new stock market year started with profit-taking on US technology stocks,” stated analyst Andreas Hürkamp from Commerzbank. The NASDAQ 100 had increased by more than half in 2023, significantly more than other internationally important indices. The DAX 40 was up around 20 percent in 2023 and the Dow Jones 30 Industrial was up less than 14 percent.
Some German tech stocks that had already shown weakness the day before also continued to decline on Wednesday. In the DAX, the shares of chip producer Infineon were hit with a discount via XETRA of temporarily 4.4 percent to 35.43 euros. The titles of some online stocks that are important on the NASDAQ in the USA thanks to Amazon, Netflix and Meta Platforms (ex Facebook) also followed downwards. Titles from the online retailer Zalando temporarily fell by 4.58 percent to 20.00 euros on Wednesday. However, Delivery Hero were an exception here with a recovery.
After the year-end rally, investors are approaching stocks more cautiously in the new year. “Tech stocks are bearing the brunt of the losses,” said analyst Ricardo Evangelista from broker ActivTrades. Investors are eagerly awaiting economic data that is important for the further course of monetary policy. They also decide whether the priced-in interest rate cut expectations are justified. As the market says, investors are already cutting them down again recently.
In the afternoon there will be the purchasing managers’ index for US industry, which is published by the US institute ISM. This will be supplemented in the evening by the minutes of the US Federal Reserve Bank, which provide details from the last interest rate meeting. According to Commerzbank, the focus is particularly strong on news about the US job market over the course of the week, which will be crowned with the official labor market report on Friday.
“If the US employment numbers indicate a further slowdown in the labor market, this would leave the Fed no choice but to start cutting interest rates in March,” said ActivTrades expert Evangelista.
FRANKFURT/PARIS/AMSTERDAM (dpa-AFX)
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