After the previous day's rally because of statements by the Fed chief about the interest rate of the US Federal Reserve, realism returned to Wall Street on Thursday. Investors tend to take profits and are once again playing the fear of recession card. The software provider Salesforce is punished after a gloomy forecast.
After indications of smaller interest rate hikes by the Fed, the euphoria of US investors has subsided. The Dow Jones index of standard values closed 0.6 percent lower on Thursday at 34,395 points. The tech-heavy Nasdaq advanced 0.1 percent to 11,482 points. The broad S
At the same time, traders are advised to be cautious ahead of the US jobs data at the end of the week. After the economic data published on Thursday, analysts spoke of a mixed picture. "The manufacturing sector is obviously in a recession," said Peter Cardillo, chief economist at investment firm Spartan. At the same time, the price index for consumer spending rose by 0.3 percentage points less than in the previous month, which may indicate slowing inflation. The initial jobless claims, on the other hand, were slightly lower than expected.
According to Konstantin Oldenburger, market analyst at online broker CMC Markets, the continued strength of the labor market could prevent the US Federal Reserve from making smaller interest rate hikes. “This needs to cool further for the Fed to be confident that inflation will fall towards its 2% target.”
Nonetheless, Fed Chair Jerome Powell's speech and the prospect of an easing of China's strict corona restrictions hit the dollar as an anti-crisis currency. The index, which measures US foreign exchange against other major currencies, fell another 1.2 percent to 104.72 points on Wednesday after a one percent slide.
The market's indecisiveness was reflected primarily in growth stocks with fluctuating losses and gains at corporations such as Tesla, Microsoft, Amazon and Apple. The titles of the software house Salesforce fell after the announcement of a change in the management board by more than eight percent. Wholesaler Costco's stock also fell more than 6 percent after disappointing sales figures for November.