Frankfurt US investors reacted with relief to the interest rate decision by the US Federal Reserve and bought heavily. The most important US indices were up up to 3.2 percent at the end of trading on Wednesday evening. The Fed announced in the afternoon local time that it intends to raise its key interest rate by 0.5 percentage points – the largest rate hike in 22 years. The range is therefore 0.75 to 1.0 percent. In March, the Fed initiated the turnaround in interest rates with an increase of 0.25 percentage points.
Fed Chairman Jerome Powell was under pressure to act in view of the rapid price increases. Inflation in the US was last at 8.5 percent, with low earners suffering the most. A “dangerous wage-price spiral” had recently emerged on the labor market, as the independent capital market consultant Ed Yardeni pointed out. That requires a much more aggressive approach. “We pay very close attention to inflation risks,” the Fed said.
The US leading index Dow Jones closed 2.81 percent up at around 34,061 points – this corresponds to a gain of 932 points. The technology-heavy Nasdaq advances around 3.2 percent to 12,964 points. The broader S&P 500 gained 2.9 percent to close at 4,300 points.
Airbnb was one of the favorites on the US stock market with a price increase of more than seven percent. The room broker had presented a quarterly result above market expectations and an optimistic outlook for the summer business. Analysts at investment bank Piper Sandler commented that the figures indicated that the company could reach its long-term margin targets faster than expected.
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Disappointing quarterly results and overturned full-year targets brought Tupperware one of the biggest price losses in the company’s history. The shares of the provider of fresh food containers fall on Wall Street by almost 32 percent, as much as the stock market crash in March 2020. Sales reportedly fell by 16 percent, profits were $ 0.12 each Share. The corona lockdowns in China and the Ukraine war would have affected business.
Job creation in the US slowed down surprisingly significantly in April given the widespread shortage of staff. The bottom line is that private companies only created 247,000 jobs, as the personnel service provider ADP announced on Wednesday based on its monthly company survey.
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This is the weakest job growth since April 2020, when the US job market collapsed after the outbreak of the corona crisis. Experts polled by Reuters news agency had expected job growth of 395,000 in April after a revised 479,000 in March.
The US trade deficit rose to a record high in March. The Department of Commerce announced on Wednesday in Washington that the deficit had climbed to 109.8 billion US dollars (currently 104.3 billion euros). This is the highest value ever determined. In the previous month, the deficit was slightly revised upwards at $89.8 billion.
Individual values in focus
Above: At times, shares fell more than 10 percent. However, the company had reported a quarterly loss and sales that beat estimates. Uber saw volume trips increase during the quarter, while grocery deliveries also continued to grow.
Moderna: Shares rose 5.8 percent as the vaccine maker’s quarterly results came in well ahead of estimates. Moderna earned $8.58 per share for the quarter compared to a consensus estimate of $5.21.
Lyft: The papers fell more than 30 percent. The driving service provider wants to increase its spending to recruit more drivers. As a result, the earnings forecast fell short of expectations.
Advanced Micro Devices: AMD shares rose 9.1 percent after the chipmaker reported earnings and positive earnings for its latest quarter. AMD earned $1.13 per share on an adjusted basis, compared to a consensus estimate of 91 cents. The company also issued a higher-than-expected outlook as demand for its chips in data centers has increased.
Livent: The lithium maker’s shares rose 30 percent. The company raised its sales guidance for 2022. Livent is benefiting from strong demand for lithium, which is used in batteries for electric vehicles.
akamai Technologies: The cybersecurity company’s shares plunged 9.8 percent. Akamai missed earnings estimates for its most recent quarter, despite revenue coming in. CEO Tom Leighton pointed out that the company was struggling with a difficult global environment and a strong dollar.
More: Despite a record loss in April, Cathie Wood buys shares for 280 million dollars