Wall Street closes in the red – Tesla paper gave way

Frankfurt After the recent price gains, some US investors are cashing in. The Dow Jones lost 0.1 percent on Wednesday to 30,274 points. The technology-heavy Nasdaq fell 0.3 percent to just under 11,149 points. The broad S&P 500 lost 0.2 percent to just under 3794 points.

Much of the rally over the past two days was merely a reaction to previous losses, said Robert Pavlik, portfolio manager at wealth manager Dakota Wealth. It was based on the hope that the US Federal Reserve would slow down its rate hikes in the coming months. However, the strong employment figures from the private US employment agency ADP and another drastic interest rate hike in New Zealand dampened these speculations.

Before there is a sustainable recovery, there must be another big sell-off, said Peter Cardillo, chief economist at investment advisor Spartan. Because the recent price jump was just a flash in the pan. The stress factors were not yet adequately reflected in the prices.