The inflation rate in the US fell to 8.2 percent in September.
(Photo: dpa)
Frankfurt Investors are withdrawing from the US stock market in anticipation of a sustained rate hike by the Fed. The leading indices Dow Jones, Nasdaq and S&P 500 fell by up to 3.2 percent at the opening and were listed at 28,660.94 points, 10,088.83 points and 3491.58 points, each as low as about two years ago.
Inflation fell less sharply than expected in September. At the same time, the core rate, which excludes the highly volatile food and energy prices, rose.
“It shows that inflation is still not under control,” said Robert Pavlik, portfolio manager at money manager Dakota Wealth. More cautious rate hikes, which the market had hoped for, are not in sight.
Listen to our podcast on the topic: US inflation falls for the third straight day – is this the turnaround?
When it came to companies, Applied Materials took the spotlight. The chip industry supplier lowered its sales targets due to new US restrictions on certain technology exports to China. The stock then fell nearly 6 percent to a two-year low of $71.51.
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He thinks Applied Materials is undervalued, wrote analyst Abhinav Davuluri from research house Morningstar. However, the industry prospects are more uncertain due to the new restrictions and lower investments must be expected. Therefore, he lowers his price target to 110 from 142 dollars.
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