The Dow Jones closes in red
Investors continue to shake ahead of the Fed’s decision
Out of fear of rising interest rates, stockbrokers are pulling out of risky investments like cryptocurrencies. The rest of Wall Street is still nervous too. Price pressure in the US is not easing. The big winner is the parcel delivery company FedEx.
Other investors are pulling out of Wall Street after the sell-off earlier this week. The US standard value index Dow Jones and the wide one S&P 500 it marked the lowest level in about a year and a half with 30,364.83 and 3735.48 points respectively. The one with a high technological content Nasdaq it was initially quoted at 10,828.35 points, the low of almost two years ago, but then it worked its way to the advantage. “Investors are nervous,” said portfolio manager Paul Nolte of wealth manager Kingsview.
Nobody wants to lean too far out of the window before the Fed interest rate decision, as there is a possibility that the key rate will increase by 0.75 instead of the reported 0.5 percentage points. These speculations would be underpinned by the persistently high rise of nearly 11% in producer prices, said Naeem Aslam, chief market analyst at brokerage house AvaTrade.
In this context, the Dollar index, which tracks the rate against the major currencies, fell 0.4% to hit 105.48 points for the second consecutive day of up to 19 and a half years. At the same time, investors sold US government bonds again. This pushed the 10-year T-Bond yield to an 11-year high of 3.456%.
Cryptocurrencies have been sold again. Bitcoin And Ethereum sometimes it fell by more than ten percent. At $ 22,197 and $ 1,074, they were rarely listed. “The fear and uncertainty are enormous,” said portfolio manager Thomas Altmann of investment advisor QC Partners. “Anything that carries any kind of risk is sold.” On the commodity markets, on the other hand, the price of the crude variety increased WTI by one percent to $ 118.54 per barrel (159 liters). The failure of Russian deliveries cannot be compensated for, said analyst Jeffrey Halley of the Oanda brokerage house. Many producing countries have invested too little to expand their production capacities.
One of the favorites of the US stock market Oracle, which recorded a sharp increase in price. The software group had announced quarterly earnings that exceeded market expectations. The outlook for the cloud business also surprised positively, commended analyst Derrick Wood of asset manager Cowen. Thanks to the accelerated growth, the stock still has room for improvement. Oracle stocks therefore rose by more than ten percent. The actions of Fedex With an increase of more than 14 percent, the largest daily earnings in nearly 36 years beckoned.