New York (dpa-AfX)-The interest decision of the US Federal Reserve Fed tore the Dow Jones Industrial from its youngest lethargy on Wednesday and leaned to a record high. Investors reacted relieved that the Fed had reduced the key interest rate by 0.25 percentage points for the first time in about three quarters of a year. However, the further interest path also remains unclear at the press conference according to the additional monetary statements of the central bank and the statements by Fed boss Jerome Powell. Therefore, the Dow lost a good part of his daily winnings.
The leading index closed 0.57 percent in plus 46,018.32 points. Its record is now almost 46,262 points. The most important technology indices and the S&P 500 market width interrupted their latest record hunt. They had already benefited from the hope of lower interest rates to boost the economy in advance.
The S&P 500 now fell 0.10 percent to 6,600.35 points. The technology -based Nasdaq 100 lost 0.21 percent to 24,223.69 points. The leading minor index Russel 2000 gave up moderately after he had in the meantime approached his record high with an increase of 2 percent. The prospect of falling financing costs in particular supports small and medium -sized companies.
The key interest rate is now at a range of 4.0 to 4.25 percent. By the end of the year, the Fed promised further interest reductions – up to two interest steps down are possible. According to Thomas Gitzel, chief economist at VP Bank, it can be assumed that at each of the remaining two sessions of the key interest rate is reduced by 0.25 percentage points. According to Fed, another reduction could then take place in 2026.
Analyst Elmar Völker from Landesbank Baden-Württemberg was more skeptical. Despite the projection that is indicated by the current reduction, a series of further relaxation steps follows: “The FED is in a dilemma between the unexpectedly significant deterioration in the labor market situation and an impending inflation thrust due to the customs policy of the US government.”
In addition, according to peoples, the Fed has to defend itself. Monetary policy Because of the constant urge to loosen from the White House on low interest rates and therefore to lose their credibility on the financial markets. The risk of monetary policy failures in this mixture is growing. In view of the risk of inflation, the expert continues to consider a cautious procedure for further interest reductions, but cannot rule out that the FED can now be driven by labor market worries.
Nvidia was under the individual values. The “Financial Times” had reported that China’s cyber security authority CAC had instructed the country’s largest technology groups to refrain from buying certain chips for artificial intelligence (AI) in the Chipriesen. The dispute over high-tech chips between China and the USA would continue to worsen. The Nvidia shares lost 2.6 percent as a clear bottom in the Dow. At the index tip, the share of the credit card provider American Express attracted 2.7 percent after they had climbed a record in the course of the trade.
At the Chinese search engine operator Baidu (Baiduccom), the AI course rally continued to almost $ 138 with an increase of 11.3 percent. The Jefferies analysis house had confirmed its purchase recommendation and increased the price target significantly to $ 157. The papers of the Cloud software specialist Workday attracted 7.3 percent and were the leader in Nasdaq 100. After the last bad mood, the chance risk profile said, it said from the analysis house evercore isi/la/nas
— from Lutz Alexander, dpa-Afx —