Wall Street continues to be dominated by concerns about further sharp rate hikes to curb inflation and the increasing likelihood of a recession. On the last day of trading, the leading index said goodbye to the weekend with a minus.
After the price losses of the past few weeks, the selling pressure on Wall Street is easing somewhat. However, fears of interest rate increases that flared up again slowed down the recovery of the US stock market. On Wall Street, the Dow Jones fell on Friday. The leading US index lost 1.7 percent to 28,725.51 points. The tech-heavy Nasdaq fell 1.5 percent to 10,575.62 points and the broad-based S
"There is currently a tug of war on the market," said stock market expert John Woolfitt from brokerage house Atlantic. On the one hand, bargain hunters are on the prowl. On the other hand, investors got rid of stocks that they felt no longer fit into the portfolio in the current environment. However, sentiment was dampened by US consumption data. Expenditure increased by 0.4 percent, twice as much as expected. At the same time, however, the price development index, which is important for US monetary policy, rose by 0.3 percent. This is another argument for the Federal Reserve to tighten monetary policy, said Naeem Aslam, chief market analyst at brokerage firm AvaTrade. Investors are expecting the fourth rate hike in a row of 0.75 percentage points in early November.
Meanwhile, the world's leading currency started to jump to new highs again. The dollar index, which tracks the rate against major currencies, rose 0.4 percent to 112.2 points. Every setback is only due to profit-taking to form the basis for a new price jump, said investment strategist Joel Kruger from financial services provider LMAX. A trend reversal is not in sight. Investors are assuming that the US Federal Reserve will stick to its tight rate hike course for the foreseeable future.
Nike was one of the biggest losers on the US stock market with a price slide of more than twelve percent. The world's largest sporting goods maker announced a slump in profits and warned of further pressure on margins due to the strong dollar and high inventories, which would have to be counteracted with discounts. However, sales have probably bottomed out, commented analyst David Swartz from the research house Morningstar. In addition, thanks to the strong brand name and the planned savings, higher margins can be expected again in the longer term. In the wake of Nike's recent slide, rivals Under Armor's titles fell 9.4 percent and Lululemon 6.4 percent. The sporting goods retailer Foot Locker lost 4.7 percent.
Tesla's shares have also declined, losing around one percent. The electric car maker plans to significantly increase production of its best-selling Model Y and Model 3 vehicles in the fourth quarter. According to internal plans seen by Reuters, nearly 495,000 Model Y and Model 3 vehicles are expected to be manufactured in the final quarter of 2022. In contrast, the papers from Micron, which rose by 0.8 percent, were in demand. In Japan, the memory chip manufacturer can expect subsidies equivalent to up to 330 million euros to expand production there.
