Investors are awaiting clear directional signals that inflation is slowing. But rising energy prices continue to worry them. Trading apps like Robinhood fear for their business model because the US Securities and Exchange Commission wants to tighten the rules for stock trading.
Resurgent inflation worries end Wall Street's recent recovery. The rise in government bond yields above the psychologically important three percent mark and the rise in oil prices were one of the triggers. The US standard value index Dow Jones fell by 0.86 percent to 32,895 points. The broad S
Despite increased inventories, the price of US crude oil WTI rose by 2.7 percent at times and, at $122.66 per barrel (159 liters), was as high as it was three months ago. The end of the lockdowns in China is fueling speculation that demand will increase, said UBS analyst Giovanni Staunovo. There is also a threat of a strike by Norwegian oil workers.
When it came to business, Robinhood took the spotlight. The US Securities and Exchange Commission wants to tighten the rules for stock trading. This means that the trading app, which is popular with young small investors, is threatening to lose its main source of income: discounts and remuneration from large trading houses for forwarding orders. Robinhood titles are down 3.9 percent after slipping about 4 percent on Tuesday. The brokerage house Charles Schwab, whose income also largely consists of these so-called PFOF ("Payment-for-Order-Flow"), lost 2.6 percent. State Street stocks also came under pressure, falling 5.5 percent. According to a media report, the financial investor is considering taking over Credit Suisse.
Among the favorites on Wall Street were US shares in Chinese companies such as the online retailer Alibaba and Pinduoduo or the search engine operator Baidu. They gained up to 14 percent thanks to indications of a relaxation of strict regulation by the Beijing government. Investors also boldly grabbed Roku's papers. They also rose by nine percent. Netflix has rumored to be eyeing the streaming device provider and online advertising platform operator. Since the online video store is apparently planning cheaper, advertising-financed subscriptions, the company could buy away a potential competitor, said analyst Susannah Streeter from brokerage house Hargreaves Landsdown.