The nervousness on the markets is high despite signs of recovery in the meantime.
(Photo: Reuters)
new York The latest US inflation data weighed on Wall Street on Wednesday. The US standard value index Dow Jones closed one percent lower at 31,834 points. The broad S&P 500 lost 1.6 percent to 3935 points. The tech-heavy Nasdaq fell 3.2 percent to 11,364 points. According to experts, higher interest rates will devalue the future profits of these high-growth companies.
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.
Against the background of the ongoing discussions about an EU embargo on Russian oil imports, the price for the US variety WTI rose 5.84 percent to $105.59 per barrel (159 liters). 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.
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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 the end there was still a minus of a good 26 percent. 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 fell 6.72 percent on Wednesday.
Wendy’s: The company reported adjusted earnings of 17 cents per 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. Shares slipped 11.22 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. The stock rose 3.36 percent.
Unity Software: The papers fell by 36.91 percent. 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 stock rose 1.16 percent after the company’s profit for the past quarter beat expectations thanks to rising oil prices. Occidental is the top gainer among S&P 500 stocks, having more than doubled this year.
Wendy’s: The company’s stocks fell more than 11 percent. Due to Corona and winter storms in the USA, the sales of the fast-food restaurant chain rose by only 1.1 percent at the beginning of the year. Analysts had expected double that. However, foreign business is going better than expected, analyst Andrew Charles from asset manager Cowen pointed out. The company also reaffirmed its full-year targets.
More: Despite a record loss in April, Cathie Wood buys shares for 280 million dollars.