new York Investors on Wall Street have largely given up hope of rate cuts by the end of the year and have ducked for cover. The Dow Jones lost 0.1 percent to 33,891 points. The tech-heavy Nasdaq fell 1% to 11,887 and the broader S&P 500 fell 0.6% to 4111.
The surprisingly strong job numbers on Friday continued to be a dominant topic on the market. Investors had expected rate cuts in the fourth quarter, but that expectation needs to be reassessed in light of the jobs report, said Art Hogan, chief market strategist at B. Riley Financial. If US citizens weren’t afraid of losing their jobs, they wouldn’t be cutting back on spending, which in turn keeps inflation high, said Anthony Saglimbene of wealth manager Ameriprise Financial. Investors are therefore looking forward to the speech by Federal Reserve Chairman Jerome Powell, which is expected to be held on Tuesday.
Added to this was the fear of negative consequences for economic relations between the USA and China from the downing of a suspected Chinese spy balloon over the weekend. This incident makes it likely that the US will further restrict the use of Chinese technology and exports of US technology, said portfolio manager Thomas Altmann of asset manager QC Partners. As a result, Chinese companies came under pressure on the US stock exchange. The titles of online retailers JD.com and Pinduoduo, for example, lost 1.6 and just under two percent.
Against the background of the humming US job engine and the interest rate concerns that followed, the dollar was in demand among investors as a safe haven. The dollar index rose 0.5 percent to 103.63 against a basket of major currencies. In return, the euro lost 0.6 percent to $1.0724. The dollar had already gained one percent against the euro on Friday. Energy stocks and copper processors in particular suffered from the strengthening of the dollar.
US stock market expert Koch: “How long will interest rates stay up?”
Look at other individual values
dell: The shares of the US technology company Dell fell by three percent because of announced layoffs. According to an internal statement, the PC manufacturer is cutting about 6,650 jobs or five percent of the workforce.
Newmont: Industry leader Newmont wants to buy the Australian gold mine operator Newcrest Mining and is thus adding to its shares. The titles of the US group fell by 4.23 percent at times. A $16.9 billion bid to buy Newcrest has been made, Newmont said. Some analysts were critical of the offer. There could be disagreements about the proposed takeover price, and the top position at Newcrest is currently vacant, the analysts at RBC write.
Tesla: The acquittal of Tesla and its CEO Elon Musk in proceedings for misleading investors in the shares of the US electric car maker. They rose by around 2.5 percent to $194.76. Exactly one month ago, the papers were still available for just under $102.
Tyson: Quarterly figures that fell short of market expectations and a lowered outlook pushed the shares of US meat processor Tyson down 4.6 percent. The group “got one in the mouth” because of an oversupply, said company boss Donnie King. The worst outbreak of bird flu in US history had restricted chicken exports and increased supply accordingly.
More: That’s what fund managers expect in this stock market year