Rivian rushes to the basement
The fear of stagflation scares US investors
Wall Street suffered huge losses earlier in the week. The descent then continued at an accelerated pace. Concerns over stagflation had weighed on US exchanges the previous week following the US Federal Reserve’s hike in interest rates.
Disappointing economic data from China and fears of rapidly rising interest rates weighed heavily on US exchanges earlier in the week. of the Dow Jonesthe index lost two percent to 32,246 points, S & P-500 (3.991 points) e Nasdaq-Composite (11,623 points) fell by 3.2 and 4.3% respectively. The S&P 500 fell below 4,000 points for the first time since April 2021.
“The fear has become so great that everything is sold and the proverbial baby is thrown out with the bathwater,” said Christopher Grisanti, MAI Capital Management’s chief equity strategist. Investors were particularly concerned about long-term interest rates. “The higher they go, the more fearful they are of recession or stagflation.” The yield on the US 10-year bond rose to 3.16%, the highest since November 2018. After the US Federal Reserve raised interest rates by half a percentage point last week, many traders are expecting another increase of 0 to 0.75 percentage points in June. . “The concern is that the Federal Reserve will essentially ignore market conditions and stock market volatility and proceed to raise interest rates,” said Matt Stucky, portfolio manager at Northwestern Mutual Wealth Management.
In this context, the climb Dollarindex at 103.71 points, the highest value since December 2002. In the current uncertain environment, the world’s leading currency has also benefited from its “safe haven” image, Barclays Bank analysts write. Investors watched the military parade in Moscow on the anniversary of the Soviet Union’s victory over Nazi Germany in 1945 with a worried expression. In a speech, Russian President Vladimir Putin accused the West of preparing an invasion of his country. Contrary to recent fears, however, he has not announced a general mobilization or the use of new weapon systems.
Meanwhile, the cryptocurrency has gone under the wheels Bitcoin. The price plummeted at its peak of 14 percent to $ 31,282. Ethereum even slipped nearly 9%. “As interest rates rise, investors are turning their backs on risky asset classes and looking for fixed income alternatives,” said Emden Research analyst Timo Emden.
Among the biggest losers were Tesla, which fell more than nine percent at the top. Supplier Quanta, which makes computer circuits for the electric car maker, is struggling with an increasing number of corona infections at its manufacturing facility in China. This also sets Apple to. The US company relies on Quanta for its MacBooks. Apple shares fell about 3%.
Technological stocks such as Microsoft, Amazon, Google-Owners Alphabet and Meta lost between 1.7 and 3.3 percent. A media account of the sale of shares of the lead investor Ford meanwhile has left the shares of Riviano it dropped by about 20 percent to an all-time low. Ford is selling eight million of its Rivian shares because the holding period of the shares expired on Sunday, CNBC reported over the weekend. According to Refinitiv, Ford was Rivian’s fourth largest shareholder with an 11.4% stake. The electric car maker lowered its production targets for 2022 due to supply chain problems.
Among the individual shares extracted Biotechnology 3 percent off. In the first quarter, the biopharmaceutical company benefited from high demand for its corona vaccine developed in partnership with Pfizer. The Mainz-based company, listed on the US stock exchange, more than tripled its sales and profits compared to the same period last year. Pfizer, on the other hand, fell 0.8%.