2024-03-25 21:21:00
Dow Jones closes in the red, US investors put on the brakes following chasing records
March 25, 2024, 10:21 p.m. Listen to article
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Slight price losses characterized the picture on the US stock markets at the start of the week. Bucking the trend, Boeing shares occasionally rise by up to four percent, and investors react positively to the departure of CEO Calhoun. Meanwhile, chip companies can largely offset their price losses.
After the latest record hunt, investors on Wall Street took a breather at the start of the week. The Dow Jones index of standard stocks closed 0.4 percent lower at 39,313 points on Monday. The technology-heavy Nasdaq fell 0.3 percent to 16,384 points. The broad S&P 500 lost 0.3 percent to 5218 points.
Last week, the head of the US Federal Reserve, Jerome Powell, fueled investors’ buying mood with his commitment to three interest rate cuts this year. “Stocks might consolidate before Easter,” said XM analyst Raffi Boyadjian. However, there was no sign of this on the European stock markets.
Investors in the cryptocurrency market were once once more willing to take risks. The cyber currency Bitcoin rose in price by more than eleven percent to up to $70,840, breaking the 70,000 mark once more. “Investors are looking for risk once more and are obviously finally ending the series of profit-taking,” stated Timo Emden from Emden Research. The upcoming “halving”, i.e. the artificial shortage of Bitcoin supplies, is casting its shadow. In the wake of Bitcoin, cryptocurrency and blockchain-related stocks such as exchange operator Coinbase, crypto miner Riot Platforms and software company MicroStrategy also rose significantly.
Chip manufacturers asked
On Wall Street, the continued rise in chip stocks limited losses. Memory chip manufacturer Micron Technology climbed to a new all-time high. The shares rose by up to ten percent to $121.41. “I think it’s just a continuation of the excitement around AI-related companies and an opportunity to look for the next Nvidia-type winner,” said Rick Meckler, partner at Cherry Lane Investments. The hype surrounding artificial intelligence (AI) also drove up the stocks of industry giant Nvidia by around one percent.
Meanwhile, a media report regarding a ban on components from large US technology companies in China had a negative impact on individual stocks. The titles of the chip companies Intel and AMD temporarily lost more than four percent. A report that China wants to ban the industry giants’ chips from its government computers caused selling pressure. “If the Chinese government stops buying products from Intel and AMD, that might reduce sales of both companies by up to five percent each,” said Stacy Rasgon, analyst at US asset manager Bernstein. During trading, AMD was able to make up for the price losses and limit Intel to minus one percent.
Bucking the trend, Boeing shares temporarily rose by up to almost four percent, thereby curbing the losses of the Dow Jones index. In the end there was an increase of 1.4 percent. Investors expressed relief that Boeing CEO Dave Calhoun will vacate the executive chair by the end of the year following a series of safety defects in aircraft production. Further changes in the management of the Airbus rival are also planned. Analysts and investors called the restructuring a positive for Boeing, but stressed that much depends on Calhoun’s successor and the change in the company’s culture.
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