NEW YORK (dpa-AFX) – One day before the expected next strong one rate hike in the United States, US stock markets have fallen. The leading index Dow Jones Industrial (Dow Jones 30 Industrial) fell on Tuesday by 0.71 percent to 31,761.54 points. On Friday it was still at its highest level in six weeks. Weak quarterly reports from heavyweights such as Walmart, UPS (United Parcel Service) and General Motors also weighed on sentiment.
The US Federal Reserve’s interest rate decision on Wednesday is being eagerly awaited. Then the Federal Reserve Bank is expected to raise interest rates by 0.75 percentage points. In view of the very high inflation, possibly even a full point, as some Brsians speculate. However, several central bankers recently commented negatively on this.
The market-wide S&P 500 lost 1.15 percent on Tuesday to 3921.05 points. The technology-heavy NASDAQ 100 lost even more ground with 1.96 percent to 12,086.90 points.
The prices of large tech companies, which publish quarterly figures after the trading day and in the coming days, came under pressure. Meta Platforms (Meta Platforms (ex Facebook)) (Facebook), Amazon, Microsoft and the Google holding Alphabet (Alphabet A (ex Google)) fell by a good five percent.
“Investors are concerned that the economic downturn will impact the Big Tech space, where the market has seen the winners of the last decade,” broker XTB wrote. cost reductions and downsizing had become the new norm among tech companies, which may indicate that the sector as a whole is in for a painful slowdown.
A surprise profit warning from Walmart weighed on the entire retail sector. US consumers are tightening their spending belts in the face of high inflation. Walmart shares fell 7.6 percent and brought up the rear in the Dow index. The shares of Home Depot, Target and the discount chain Ross Stores also came under pressure.
The conglomerate 3M wants to part with its multi-billion dollar healthcare division. This helped the share price at the top of the Dow to rise by almost five percent.
UPS shares lost 3.4 percent. Package deliveries in the second quarter fell more than expected, by four percent in the US and by as much as 13 percent internationally.
Shares of McDonald’s (McDonalds) ended up 2.7 percent. According to Brsianer, customer demand does not seem to have dropped here in the second quarter despite rising prices in some cases.
Coca-Cola gained 1.6 percent. The beverage manufacturer is benefiting from rising prices for its products and raised its annual targets after the second quarter.
General Motors also suffered from the continued shortage of semiconductors in the second quarter. The group also expressed caution with a view to the future. Shares fell 3.4 percent.
General Electric (General Electric), on the other hand, gained 4.6 percent. The Group benefited from strong demand from airlines in the engine division in the second quarter.
Shopify’s shares fell 14 percent. The developer of software for online trading wants to lay off every tenth employee. This increases the likelihood that the company will cut full-year targets, noted RBC analyst Paul Driver.
The euro came under pressure as a result of the European gas crisis and was last listed at 1.0117 US dollars. The European Central Bank had previously set the reference rate at $1.0124 (Monday: $1.0236). The dollar had cost 0.9878 (0.9769) euros.
On the US bond market, the 10-year Treasury futures contract rose 0.07 percent to 119.73 points. The yield on ten-year government bonds was 2.81 percent./bek/he
— By Benjamin Krieger, dpa-AFX —