Wall Street experienced a turbulent trading day after the Fed's interest rate decision - and the outlook from Fed boss Powell. The mood finally changes, the indices give way. There are still some jewels among the individual values - such as the Tinder operator Match.
On Wall Street, the US Federal Reserve caused a lot of ups and downs. After the expected interest rate hike of 75 basis points to the new range of 3.75 to 4.00 percent, US investors initially boldly grabbed shares. However, when Fed Chair Jerome Powell explained that it was still far too early to discuss an interest rate pause, the mood changed and securities were thrown out of the portfolios. The reason for this is that some economists fear that the US economy will run out of steam as a result of the interest rate hikes and that a recession will break out.
At market close, the Dow Jones index of standard values was 1.55 percent lower at 32,148 points. The broader S
As expected, the US Federal Reserve has raised interest rates by three-quarters of a percentage point, said Commerzbank analyst Bernd Weidensteiner. In addition, the Fed was very nuanced. "On the one hand, she indicated a slower pace for the next steps." On the other hand, an interest rate pause is not an issue and a higher target level for interest rates is emerging than was thought at the last meeting.
Ringing cash registers on the dating app Tinder were well received by investors in the operating company Match. Match shares gained 4.2 percent. The increasing popularity of paid premium subscriptions to the app boosted group sales more than expected.
Paramount shares, on the other hand, fell by more than 12 percent. A decline in advertising revenue gave the company quarterly revenue below market expectations. The cosmetics group Estee Lauder has to make up its annual targets because of the burden of the corona restrictions in the important Chinese market and the strong US dollar. The shares lost more than eight percent.
Investor concerns about potential Tupperware financing problems caused shares to plummet by around 42 percent to a two-and-a-half-year low. According to its own information, the provider of fresh-keeping boxes is currently negotiating with creditors about its credit conditions. According to the group, there are "no assurances" that this will be successful. Tupperware is suffering from the fall in demand from China due to the corona restrictions and the poor consumer mood in Europe.
