Wall Street falls – Fed policy in view

New York Stock Exchange

Wall Street is back on the recovery path.

(Photo: Reuters)

Dusseldorf After the recent price gains, some US investors are cashing in. The rising oil price is also depressing sentiment on Wall Street, said Sam Stovall, chief investment strategist at research house CFRA. The leading indices Dow Jones, Nasdaq and S&P 500 each fell by around one percent at the opening.

In addition to the Ukraine war, the guesswork about the pace of the expected US interest rate hikes dominated the New York stock market. “Inflation is very high,” said Andrea Cicione, chief investment strategist at research house TS Lombard. “Therefore, if the Fed tightens too aggressively and the economy plunges into recession, the risk of policy mistakes increases.”

On the day before the summit of the heads of state and government of the seven leading industrialized countries (G7) and NATO, the discussion about a European embargo on Russian oil imports picked up speed again. Against this background, the price of US oil grade WTI increased by 4.4 percent to $114.09 per barrel (159 litres).

Look at the individual values

GameStop: GameStop is one of the winners in the US stock market. The titles of the video game retailer rose by almost seven percent after board chairman and billionaire Ryan Cohen made the purchase of 100,000 GameStop papers public in a mandatory announcement.

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“Meme” Values: Investors are also grabbing other “meme” stocks like AMC or Koss, a group of companies that caused a sensation with price jumps in early 2021. The rally was fueled by small investors who posted comments on relevant internet forums encouraged each other to buy, thereby rattling some multi-billion dollar hedge funds that had been betting on these stocks falling.

Adobe: Adobe beat estimates by three cents with adjusted quarterly earnings of $3.37 per share. The software manufacturer’s sales were also slightly above forecast. In contrast, Adobe expects subscription revenue to fall by $75 million. The reason is the existing business in Russia and Belarus. Adobe loses 6.9 percent.

Marijuana Stocks: Marijuana stocks are up in the US. Previously, there had been news of two takeover deals in the industry. Cresco Labs buys Columbia Care for $2 billion. Aurora Cannabis is acquiring Thrive Cannabis parent company Terrafarma for $38 billion. Tilray is up 9.2 percent, Canopy Growth is up 6.6 percent, Aurora Cannabis is up 8.7 percent, and Sundial is up 4.1 percent.

More: Moscow Stock Exchange resumes trading in 33 stocks

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