Dusseldorf Sentiment on Wall Street remains subdued given the high inflation in the USA. Investors only touched stocks with pointed fingers on Wednesday. The Dow Jones index of standard stocks closed 0.2 percent lower at 34,575 points on Wednesday. The technology-heavy Nasdaq, on the other hand, advanced 0.3 percent to 13,813 points. The broad S&P 500 gained 0.1 percent to 4,467 points.
Consumer prices in the USA rose by 3.7 percent in August, after 3.2 percent in July, slightly stronger than analysts expected. The core rate, which is closely monitored by the central bank and excludes the volatile prices for energy and food, fell as expected to 4.3 from 4.7 percent in July.
Stock market investors did not see this as a strong signal for an end to the Fed’s interest rate hike policy. “We expect the Federal Open Market Committee to pause this month but raise rates one last time in November and keep rates high through mid-2024, barring a recession, which we don’t expect said Sam Stovall, chief investment strategist at CFRA Research.
>> Read here: US inflation is rising – inflation rate at 3.7 percent
The recent rise in oil prices in particular had fueled inflation concerns on the financial markets. Three US airlines lowered their third-quarter margin forecasts on Wednesday due to higher fuel costs: American Airlines, Spirit Airlines and Frontier Group Holdings. The airline shares fell by up to 9.2 percent.
Moderna’s shares, however, rose by 3.2 percent after the company reported progress in the study of its mRNA-based flu vaccine. Moderna is also reducing production of its Covid-19 vaccine to adapt to lower demand following the pandemic.
US stock market expert Koch: “Interest rate hikes remain unlikely”
Ford Motor shares advanced by 1.5 percent. The carmaker had previously announced that it would double production of its hybrid pickup trucks in 2024.
In Frankfurt, the Dax closed 0.4 percent lower at 15,654 points, the EuroStoxx also fell by 0.4 percent to 4,223 points.
Look at other individual values:
Apple: The shares fell 1.19 after the company unveiled its latest iPhone model and several updates, including a new Apple Watch and redesigned AirPods.
Ford: UBS analyst Joseph Spak gives the stock a buy rating with a price target of $15, which means an upside potential of around 20 percent. Spak said Ford’s professional business should show more resilience than expected, potentially mitigating the downside of problems with electric car models. The automaker’s shares rose 1.53 percent.
More: How popular thematic funds disappoint investors