The papers of the Facebook group Meta continue their slide on Wall Street. Other tech stocks also got into trouble at the start of the week. Investors are already looking forward to Wednesday with excitement, when the US Federal Reserve's interest rate decision is imminent.
Wall Street investors hit the brakes ahead of the Federal Reserve meeting. The Dow Jones index of standard values closed 0.4 percent lower at 32,732 points. The technology-heavy Nasdaq fell about one percent to 10,988 points. The broad S
The prospect of an easing of the US Federal Reserve's aggressive rate hikes to combat inflation had boosted prices in recent weeks. Stockbrokers now eagerly awaited indications of the future pace of further interest rate hikes. A fourth interest rate hike by the US Federal Reserve by 0.75 percentage points on Wednesday is considered a foregone conclusion among stockbrokers. The Fed would thus raise the key interest rate ceiling to 4.0 percent.
In Europe, investors have not been thrown off balance by record inflation either. At the start of the week, the Dax was slightly up at 13,254 points. All in all, the leading German index rose by almost ten percent in October. The Euro Stoxx 50 climbed 0.1 percent to 3617 points at the start of the week.
Even the unexpectedly strong rise in inflation in the euro area to a record high of 10.7 percent did not upset investors. For the first time since the euro was launched, inflation in the euro zone climbed above the ten percent mark in October. The euro, meanwhile, fell 0.8 percent to $ 0.9884.
In terms of individual stocks, technology stocks again came under pressure on Wall Street. "We've seen money migrating out of the technology sector to other sectors that have posted better gains over the past two weeks," said Michael James, equity researcher at Wedbush Securities. Weak quarterly figures for heavyweights from the tech industry had recently weighed on the US stock exchanges.
At the start of the week, the shares of Facebook parent Meta again fell by more than six percent. The photo platform Instagram, which belongs to the Meta Group, admitted on Monday that some users had problems accessing Instagram accounts. According to the Downdetector website, almost 3,000 users were affected. A slump in profits and a disappointing outlook for the current quarter had already caused the Meta share to drop to its lowest value in almost seven years last week.
Apple's titles also fell 1.5 percent. The wave of new corona lockdowns in China threatens US companies with profit losses. Because the measures affected an important plant of Apple supplier Foxconn in the Chinese city of Zhengzhou, iPhone production there could drop by up to 30 percent, an insider said on Sunday. Disney also closed its theme park in Shanghai at short notice.
