The mood among investors on Wall Street is subdued.
(Photo: Reuters)
Frankfurt US investors were reluctant to buy stocks at the start of the week. Technology stocks in particular came under pressure amid rising bond yields. The technology-heavy Nasdaq index went out of trading on Monday with 15,853 points, hardly changed. The Dow Jones Index and the broader S&P 500 also treaded on the spot. They finished trading at 36,087 and 4682 points, respectively.
“Wall Street is totally fixated on what is happening in the bond market,” said analyst Ed Moya of online broker Oanda. The rising yields signaled that there was uncertainty on the stock exchanges as to whether the US Federal Reserve might be a little late with its interest rate hike plans. In view of rapidly increasing inflation, it may have to raise interest rates earlier than previously planned.
The Dow Jones index received the greatest boost from Boeing, which rose by more than five percent. Investors were pleased to receive an order from Emirates for two 777 cargo planes. In addition, Saudi Arabian Airlines negotiated with the US aircraft manufacturer about an order for wide-body aircraft.
In contrast, Tesla continued their downward trend from the previous week and meanwhile lost more than five percent. This slipped the market value of the electric car manufacturer below the one trillion dollar mark. In the end, the stock was down 1.9 percent.
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A cryptic tweet from CEO Elon Musk to US Senator Bernie Sanders, in which Musk asked if Sanders wanted to sell more shares, caused concern among investors. Since Musk has only sold about three percent of its Tesla shares so far, further sales are expected. After a Twitter vote, Musk had announced the sale of ten percent of his shares and thus triggered a wave of sales.
US stock market expert Koch: “No news, it’s good news!”
Global growth and inflation worries drove the safe haven dollar to a 16-month high at times. The dollar index, which reflects the exchange rate against major currencies, reached 95.287 points, its highest level since July 2020. In return, the euro fell to a 16-month low against the dollar.
Investors eagerly awaited Tuesday’s October retail sales data. Investors hope to shed light on the impact inflation will have on consumer spending.
The focus this week is also on the quarterly reports of major US retailers such as Walmart, Target, Home Depot and Macy’s. “Inflation is likely to be of some help to retailers as some of these big companies are able to raise prices and maintain profit margins,” said Robert Pavlik, portfolio manager at Dakota Wealth.
Individual values at a glance
Chevron: The oil company benefited from a buy recommendation from the major Swiss bank UBS and rose by a good two percent. Analyst Jon Rigby had significantly raised his estimates for the oil price by 2025.
Dollar Tree: Shares in the low-cost chain soared more than 14 percent after hitting a record high in the course of trading. Here a report by the “Wall Street Journal” caused euphoria. According to the paper, activist investor Paul Hilal holds at least $ 1.8 billion in Tree shares through his investment company Mantle Ridge Dollar Tree, making it directly one of the two largest shareholders.
More: Twelve stocks that investors can use to invest in the future.