The nervousness on the markets is high despite signs of recovery in the meantime.
(Photo: Reuters)
new York The latest US inflation data has left investors on Wall Street a bit perplexed. The leading index Dow Jones loses 0.5 percent in the course of trading, the S&P 500 falls by around one percent. The Nasdaq Composite Index falls 2.8 percent.
According to the information, the increase in US consumer prices slowed down to 8.3 from 8.5 percent in April. However, analysts had hoped for a decline to 8.1 percent.
However, the figures probably do not change the fact that the Federal Reserve will raise the key interest rate by half a percentage point in June, said investment strategist Michael Hewson from brokerage house CMC Markets. However, the prices on the futures market signaled that the majority of investors were expecting a step of 0.75 percentage points.
Meanwhile, according to stockbrokers, commodity investors were hoping for demand to pick up again thanks to the falling number of corona cases in China. This increased the price of the industrial metal copper by 1.1 percent to $9331 per ton. Against the background of the ongoing discussions about an EU embargo on Russian oil imports, the price for the US variety WTI rose 6.3 percent to $106.04 per barrel (159 liters).
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Should the EU agree on an embargo, a further rise in the price must be expected, predicted Andrew Lipow, head of the consulting firm Lipow Oil.
Against this backdrop, US shares of copper miners such as Freeport-McMoRan, Ero, Southern Copper, Hecla and Hudbay rose as much as 3.4 percent. Oil companies such as Exxon and Chevron each gained around three percent.
Coinbase was one of the biggest losers in the US stock market. The shares of the cryptocurrency exchange posted a record price drop of almost 28 percent at times due to the slide into the red and at $ 52.80 they were cheaper than ever since the IPO about a year ago. In addition, customer growth is slowing down, commented analyst Bo Pei from brokerage house US Tiger. This indicates that most consumers continue to regard Bitcoin & Co as speculative investments.
Individual values in focus
Moderna: The US biotech company Moderna, known for its corona vaccine, fired its chief financial officer, Jorge Gomez, almost immediately after he took office. The reason is an internal investigation into financial reports from his previous employer Dentsply Sirona, Moderna announced on Wednesday.
Gomez only started the job this Monday. After Dentsply Sirona made the investigation public on Tuesday, he was rid of him again on Wednesday. Nevertheless, Moderna will pay Gomez $ 700,000 (a good 664,000 euros) in compensation, according to a stock exchange announcement. However, he waives his sign-on bonus and bonus claims. Moderna stock temporarily lost more than five percent on Wednesday.
Wendy’s: The company reported adjusted earnings of 17 cents a share, down a cent on estimates. Revenue and sales also fell short of analysts’ forecasts. The restaurant chain sees a negative impact from higher costs for supplies and labor. The shares have since fallen by around 10 percent.
Wall Street expert Koch: “The stock market is under pressure”
Roblox: The company reported a bigger-than-expected loss for its most recent quarter and revenue that fell short of the stock market’s forecasts. Roblox, which operates gaming platforms, also expects further losses for the foreseeable future. However, the stock rose at times by around six percent.
Unity Software: The papers fell by more than 30 percent in the course of trading. The video game software developer issued a weaker-than-expected sales forecast. Quarterly loss was in line with estimates, but revenue was below consensus.
Occidental Petroleum: The paper rose by almost three percent at times because the company’s profit in the past quarter was above expectations thanks to rising oil prices. Occidental is the top performer among S&P 500 stocks, having more than doubled this year.
More: Despite a record loss in April, Cathie Wood buys shares for 280 million dollars.