Investors expect the Fed to raise rates soon.
(Photo: Reuters)
Frankfurt US investors were cautious about the upcoming decision by the US Federal Reserve. The Dow Jones index of the standard values fell on Monday until shortly before the close of trading by 0.6 percent to 35,774 points.
The broader S&P 500 lost 0.7 percent to 4,680 points after reaching a record high on Friday. The index of the technology exchange Nasdaq fell at the beginning of the week by a good one percent.
The focus of the stock exchange traders was the monetary policy decision expected on Wednesday by the US monetary authorities. Experts expected that the US Federal Reserve will point to a more rapid reduction in security purchases and an earlier start to interest rate hikes due to the increased inflation.
The Corona variant Omikron continued to cause uncertainty. Stocks in aircraft companies and cruise lines in particular came under pressure. The stocks of American Airlines and Carnival each fell by more than four percent in the course of trading. Investors expressed concern after at least one patient in the UK died of the variant.
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“The big unknown is still the Omicron variant, and we don’t yet know how that will affect markets and the economy, but as long as that uncertainty persists, volatility is likely to remain higher,” said trading expert Randy Frederick at the finance broker Charles Schwab.
US stock market expert Koch: “The expectations of the Fed meeting have long been priced in”
Look at the individual values
Arena: A takeover bid from competitor Pfizer, worth a total of 6.7 billion dollars, gave Arena the biggest price jump in the company’s history. The share of the pharmaceutical company rose in the US trade at times by 80 percent to around 90 dollars. Pfizer is offering $ 100 per share in cash.
Ford: Ford shares meanwhile lose almost five percent in the US business. Ford wants to triple production of its “Mustang Mach-E” model to 200,000 units per year by 2023. A total of 600,000 electric models are to be sold annually by then.
Harley-Davidson: The plan for the IPO of the electric motorcycle division brings Harley-Davidson a big jump in price. The shares rose US business at times by just under five percent. The company wants to merge the business area with an empty company shell on the stock exchange via a nearly 1.8 billion dollar merger.
Peloton: After the recent price slide in response to the latest episode of the TV series “Sex and the City”, investors are returning to Peloton. The shares gain US business more than six percent over the course of trading. On Friday they had slipped more than five percent because “Mr. Big ”- one of the main characters in the series – died of a heart attack after a training session on a peloton machine. This will hardly affect the sales figures, says analyst Simeon Siegel of the investment bank BMO. However, in the future the growth figures as at the beginning of the pandemic are no longer to be expected.
Game stop: Shares fell more than 14 percent at times after the video game retailer reported a larger loss last week than last year. The company also announced that the SEC had issued a subpoena in August to trade its shares. The Gamestop paper had slipped by more than 20 percent in the past four weeks.
Apple: Apple’s shares were initially up, but were then down around two percent, even though the company had won a decision by the appellate court. The game company Epic wanted to sue for its own app store on the iPhone – and failed. A side effect in the process were new ways for app developers to inform users about cheaper payment methods outside of the Apple platform. But this is now also on hold.
Apple is still creeping up to the $ 3 trillion mark in market value. It would be reached at a share price of $ 182.86.
Lucid Group: The shares rose by more than four percent in the course of trading. The electric vehicle maker recently announced an offer to buy convertible bonds worth $ 1.75 billion.
More: Twelve stocks that investors can use to invest in the future.