Frankfurt The relief rally on the US stock exchanges has already ended one day after the Fed interest rate decision. The Dow Jones index of standard values fell 3.3 percent to 32,923 points on Thursday. The broader S&P 500 fell 3.9 percent to 4135 points. The Nasdaq technology exchange index lost 5.0 percent to 12,315 points.
“I don’t think it’s surprising that short-term investors are looking to take some profits,” said Sam Stovall, investment strategist at wealth manager CFRA. The question is whether the price increase on Wednesday was just a technical counter-movement and whether the stock exchanges are now going on as before the interest rate meeting.
As expected, the central bank had raised interest rates by 50 basis points in the fight against inflation. However, Fed Chair Jerome Powell explicitly ruled out a 75 basis point rate hike in an upcoming meeting, easing investor fears of aggressive monetary tightening.
Investors also have to process a flood of company balance sheets on Thursday. A disappointing outlook caused Etsy’s biggest share price drop in nine months. The shares of the online marketplace specializing in handicrafts slipped by more than 15 percent.
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A quarterly result above market expectations and the prospect of bubbling profits, on the other hand, gave the lithium producer Albemarle one of the largest price jumps in the company’s history. Shares in the global industry heavyweight are up 4.8 percent.
In the US, initial jobless claims rose surprisingly last week. The number rose by 19,000 to 200,000, the Ministry of Labor said on Thursday. Experts had expected an average of 180,000 applications. Despite the increase, the level of aid applications remains low in a longer-term comparison. The weekly initial applications are considered a short-term indicator for the development of the labor market.
Individual values in focus
SeaWorld: The theme park operator’s stock fell 9.2 percent, even though the company reported a lower-than-expected quarterly loss. Revenue also topped estimates as attendance was above pre-pandemic levels.
Twitter: Twitter is up 3.5 percent. Tesla boss Elon Musk is making progress with the financing of the planned takeover of the short message service, which will cost a total of 44 billion dollars. According to the information, he received a guarantee of 7.14 billion dollars from a group of investors. US Securities and Exchange Commission documents show that Oracle co-founder Larry Ellison and investor Ron Baron are among the investors.
Shopify: The company’s adjusted quarterly earnings came in at 20 cents a share well below the consensus estimate of 64 cents. Shopify stock plummets 17.5 percent. The e-commerce platform also issued a cautious outlook.
Booking Holdings: The stock is up around four percent. The company reported better-than-expected quarterly profit and sales. The reason was an increased demand for travel services. The parent company of Priceline and other services earned an adjusted $3.90 per share, well above the consensus estimate of 90 cents.
eBay: Ebay shares fall 9.4 percent on a weaker-than-expected sales forecast. The e-commerce company beat both earnings and sales guidance for the past quarter, while inflation and a return to pre-pandemic shopping habits are among the factors weighing on forecasts for Ebay and other e-commerce companies .
Sunrun: The stock climbed 0.4 percent as the solar company’s revenue came in well above expectations, despite a larger quarterly loss. According to the company, there have been “reasonable” price increases to offset the higher costs. Demand for solar systems remained strong.
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