NEW YORK (dpa-AFX) – Investors on the US stock markets are likely to hold back on Tuesday after their recent recovery. Important economic data is not on the agenda. The reporting season, which is slowly coming to an end, also offers little news, so the consolidation phase is likely to continue.
Over an hour before trading began, the broker IG estimated the leading index Dow Jones Industrial (Dow Jones 30 Industrial) 0.2 percent lower at 34,039 points and the technology-heavy NASDAQ 100 practically unchanged at 15,156 points. At the beginning of the week, both indices only made moderate gains.
Last week, statements from US Federal Reserve Chairman Jerome Powell and a weak labor market report fueled hopes of a first key interest rate cut from mid-2024. But now an interview with the regional US Federal Reserve chief in Minneapolis, Neel Kashkari, caused some disillusionment. According to him, it is too early to declare victory over inflation. There were three months of promising data on inflation. But this is not enough, the central banker emphasized.
“Kashkari’s comments have brought the market back down to earth,” commented economist Stuart Cole from broker Equiti Capital. Many investors have recently “been led to believe that an easing of the monetary policy imminent”. Speeches from other Fed members are expected later in the day.
On the corporate side, WeWork (WeWork A) was the focus even without numbers. The troubled office space provider filed for bankruptcy protection with creditor protection under Chapter 11 of the US Bankruptcy Code. He wants to reposition himself and, among other things, reduce the amount of office space available. Backers behind around 92 percent of WeWork’s debt have agreed to the plan, the company said.
At the beginning of the month, the shares had already collapsed by almost half their value after the “Wall Street Journal” reported on corresponding plans. On Monday it fell again, by a quarter to a record low of $0.82. The company was once one of the most valuable start-ups. After the IPO more than two years ago – during the corona pandemic – the share price shot up.
Uber saw its share price fall by 1.6 percent in the pre-market on Tuesday, although the ride-hailing company surprised positively with its interim report and outlook for the current quarter. Apparently some investors took advantage of the recent, impressive recovery rally to take profits. Since the interim low almost two weeks ago, the shares had risen by up to a good 20 percent. The Nasdaq 100 had only gained eight percent of ground over the same period.
The shares of the oil giants Chevron and Exxon Mobil (ExxonMobil) fell by around one percent each in view of the significantly lower oil prices. Concerns about global economic developments pushed prices for the important raw material to their lowest level since the end of August./gl/mis