Worry regarding rising interest rates
Wall Street’s slide continues
01/20/2022, 11:05 p.m
Many US investors tend to sell out of concern regarding rising interest rates. Wall Street prices are down for the third time in a row. The next Fed meeting in the coming week is eagerly awaited.
Wall Street has now extended its slide to three straight days. It repeated the pattern from the previous day as prices tumbled to daily lows in late trading. Once once more, initial attempts at stabilization did not last. As on the previous day, market interest rates that fell once more did not provide any support. Because investors remained nervous regarding a monetary tightening by the US Federal Reserve that may be faster and more extensive than previously expected. The Federal Reserve will meet next week – it is hoped that the central bankers will be able to tighten the reins on monetary policy in order to curb rising inflation.
the Dow-Jones-Index lost another 0.9 percent to 34,715 points, S&P-500 and Nasdaq-Composite lost 1.1 and 1.3 percent respectively. On Wednesday, the tech-heavy Nasdaq Composite went into correction mode following losing 10 percent from its all-time high. The fact that even interim bargain hunters were unable to keep the index in the black was seen by retailers as an alarm signal.
In the run-up to the important Fed meeting, nervousness is increasing day by day and investors are reducing risk, it said. “I don’t see much in the market that really worries me. There’s no one saying ‘save yourself who can’, but there are some who say they will de-risk and reposition into other areas of the market,” Kestra Holdings investment strategist Kara Murphy reassured. The economic data of the day, which paint an inconsistent picture, provided little orientation.
In addition, the reporting season, which was picking up speed, set the pace. The US insurance group Travelers had adjusted earnings in the fourth quarter of 2021 significantly more than expected on the market. The share gained 3.2 percent. Regions Financial, on the other hand, fell 5.2 percent in the financial sector, the bank had reported falling net results.
American Airlines had further contained its loss in the fourth quarter and exceeded market expectations. The US group increased its sales significantly compared to the previous year, but might not reach the level before the pandemic. In the first quarter of 2022, too, development is likely to be well below the pre-crisis level. With these weak prospects, the titles turned 3.2 percent into the red.
United Airlines fell by 3.4 percent. This airline also posted losses in the fourth quarter, but they were smaller than analysts had feared. In addition, the airline increased its sales surprisingly significantly. However, the airline is still far from pre-pandemic levels, with capacities likely to be lower in 2022 than in 2019, but costs higher, traders complained.
The of Alcoa The reported business figures were positively received, operationally things went better than expected. The stock was up 2.7 percent. The shares of the specialty chemicals manufacturer H.B. Fuller lost 0.9 percent following fourth-quarter numbers were broadly in line with expectations. The railway company Union Pacific (+1.1%) reported fourth-quarter sales and earnings metrics that were above expectations.
The dollar benefited from its reputation as a perceived safe haven dollar index gained 0.3 percent in the face of the sadness in the stock market. For the greenback, the Fed meeting in the coming week was already in focus. Bank of America currency analysts believe the euro will be weaker in the medium term due to ongoing US inflation and more temporary inflation in the eurozone. “Our forecast is $1.10 at the end of the year compared to a consensus of 1.15 and a current rate of around 1.14,” the experts said.
For the oil prices following the recent rally to fresh seven-year highs, it then went lower over time. Traders spoke of profit-taking. Unexpectedly higher crude oil inventories in the USA also had a negative impact. In addition, market participants are counting on a further increase in demand. Because an extremely strong and fast omicron wave will be followed by a sharp drop in the numbers, so the hope of the market. This increases the chance of a rapid economic recovery.
Am bond market investors grabbed once more, yields fell significantly once more. These were shot too quickly too high, it said. At the gold price profits were made following the previous day’s rally – favored by the strength of the dollar.
