New York Thanks to a race to catch up in late trading, the US indices on the Nasdaq technology exchange turned positive on Monday. The Nasdaq 100, which had previously been pushed down by fear of interest rate hikes to its lowest level since mid-October, crossed the target with an increase of 0.14 percent to 15,614 points. Bargain hunters would have used the renewed attack of weakness to get started, it was said from the trade.
The standard values also reduced their discounts noticeably. The leading index Dow Jones Industrial was only 0.45 percent lower at 36,068 points at the end of trading. The market-wide S&P 500 reduced the minus to 0.14 percent at 4670 points.
The first week of trading in 2022 went very badly for technology stocks. Investors worry that higher interest rates and thus more expensive financing might slow down the momentum in the growth industry. We are now waiting with nervousness for the inflation data due in the middle of the week. The US Federal Reserve should see its tightening of monetary policy confirmed if inflation continues to rise. The economists at Goldman Sachs are now expecting four rate hikes by the Fed this year, while three hikes have been generally assumed so far.
“Goldman now expects four rate hikes in 2022 and this is simply a very hostile environment for technology and growth stocks,” said Thomas Hayes, executive director of asset manager Great Hill Capital in New York. Initially, Goldman Sachs assumed three rate hikes. Investors were hoping for further clues for the possible point in time of the interest rate turnaround from this week’s inflation data.
Top jobs of the day
Find the best jobs now and
be notified by email.
Apple, Amazon, Microsoft and Meta Platforms slipped between 1.3 and 3.2 percent for the individual values. Randy Frederick, stocks expert at Charles Schwab, still sees a good basis for large technology companies. “They are being hurt, however, as the unprofitable, heavily leveraged, and heavily indebted newer tech companies that have recently gone public are being sold, especially those that were SPACs.”
The stocks of the US media company BuzzFeed and the Uber rival Grab Holdings fell by more than eight and just under five percent. Since their stock market debut, they have thus lost almost half of their market capitalization via a merger with a so-called SPAC in December.
On the other hand, the prospect of rising interest rates made investors resort to bank stocks once more. The S&P 500 banking index rose to a record level following increasing more than nine percent last week.
Look at further individual values
Tesla: The title of the electric car manufacturer slipped at the top 4.6 percent following CEO Elon Musk announced price increases for driver assistance software in the USA on Twitter. In the course of trading, Tesla made up for the price losses. At the close of trading, however, the paper was down 3.3 percent.
Nike: Shares were down 4.41 percent following analysts HSBC downgraded the sportswear manufacturer and rival Adidas from “buy” to “hold” due to ongoing problems in the supply chain. According to state media, thousands of employees of the supplier Pou Chen, which supplies Nike and Adidas, went on strike last week in a factory in South Vietnam for higher year-end bonuses.
Beam Therapeutics: Beam Therapeutics’ shares fell 2.7 percent following the announcement of a new partnership with Pfizer. Pfizer will partner with Beam, a specialist in gene editing, to develop therapies for rare genetic diseases.
Tilray: After the Canadian pharmaceutical and cannabis company announced an unexpected quarterly profit, the stock rose 13.55 percent. As the demand for cannabis products increased by 20 percent, the company’s sales also increased.
Apria: Apria has agreed to be acquired by equipment and services company Owens & Minor for approximately $ 1.45 billion. At the start of trading on Monday, the share rose by around 26.11 percent.
Sinclair Broadcast Group: The group is planning a new app that will be used to broadcast NBA games in the future, according to a Bloomberg report. The deal might be finalized this week. The Sinclair share rose 1.21 percent over the course of trading.
More: These stocks will continue to rise in 2022
.
