High inflation increases fears of interest rate hikes in the near future. Wall Street is also feeling the effects. It's going down for the US defaults. SAP rival Salesforce, on the other hand, is one of the winners of the day.
Resurgent fears of the Fed raising interest rates more quickly are pushing Wall Street into the red. The U.S. blue-chip index Dow Jones fell 0.5 percent to 32,813.23 points. The tech-heavy Nasdaq fell 0.7 percent to 11,994.46 points and the broad-based S
Interest rate speculation was fueled by the surprising rise in the barometer for the mood of US manufacturing purchasing managers. "Interest rates will continue to rise," predicted Paul Kim, head of asset manager Simplify ETFs. Since the Fed will probably also reduce its securities holdings, the era of ultra-loose monetary policy is coming to an end after more than a decade. Therefore, further price losses of risky investments such as shares must be expected.
Investors were also worried about the EU embargo on most Russian oil supplies, said investment strategist Mike Bell of US bank JPMorgan's asset management team. They feared retaliatory measures from the government in Moscow. Against this background, the price of US crude oil WTI rose by almost two percent to $116.76 per barrel (159 liters). This helped oil companies like Exxon and Chevron gain up to 1.7 percent.
Stock market traders are also eagerly awaiting the meeting of "Opec", which includes the members of the export cartel and other producing countries such as Russia, on Thursday. According to a media report, Russia could be exempted from the group's production volume agreements. "This would give Saudi Arabia and other countries with free production capacities the opportunity to expand production more," said Commerzbank analyst Carsten Fritsch. According to insiders, however, this topic was not discussed at a preparatory working group meeting. In addition, Russia has committed itself to cooperation in OPEC.
Salesforce was one of the favorites on the US stock market with a price increase of up to 15 percent. That was the strongest increase in almost two years. Analyst Shebly Seyrafi from the brokerage house FBN praised the sales increase of the SAP rival of 24 percent in the past quarter as impressive. The same applies to the increased margin targets. The reduced full-year targets for sales coincided with the expected exchange rate burdens.
The papers from Victoria's Secret were also in demand, increasing in price by 5.3 percent. The lingerie provider made a surprisingly high profit of $1.11 per share at the start of the year. For the current quarter, Victoria's Secret announced earnings of 0.95 to 1.25 dollars per share. In view of the weakening economy, this outlook is encouraging, wrote the analysts at the Telsey consultancy.