Interest rates in the picture: Investors slam on the brakes on Wall Street

Interest rate in sight
Investors slam on the brakes on Wall Street

After recent strong gains, the new week on the American stock markets has started somewhat quieter. The main indices return. Speculation about the Fed’s course is still the subject. There are several signals from the central bank.

After the recent strong premiums, the US stock markets entered the new trading week more easily. The focus was on statements by members of the US Federal Reserve. Of the Dow Jones index closed 0.6 percent lower at 33,537 points. Of the S&P 500 recorded 0.9 percent lighter. For the Nasdaq composite fell by 1.1 percent. Recently, hopes of a less rigorous course of interest rate hikes by the US Federal Reserve and a slight easing of the corona crisis in China had fueled sentiment on Wall Street.

S&P 500 3,962.60

Statements by Vice Chairman of the US Federal Reserve Lael Brainard during the trade also pointed in that direction. “I think it will probably be appropriate to go for a slower pace of increases soon,” she said, adding that past and future rate hikes will slow the economy in ways that remain to be seen. This was offset by comments over the weekend from Fed Governor Christopher Waller, who said the Fed still has a “long way to go” and would like to see more comparable data before letting go of the gas.

However, there were also skeptical voices in the market. Inflation is still at a high level and even if the Fed slightly slows the pace of rate hikes, interest rates may not peak until later than previously expected.

oil prices fall

Of the dollars recovered somewhat from the recent sharp declines. The index rose 0.5 percent. The aggressive statements by Fed Governor Waller and the prospect of further rate hikes helped.

the oil prices traded lower after recent gains. Hopes for China’s reopening were dampened over the weekend after new record levels of Covid-19 cases were reported in Beijing and other major cities. OPEC has also left its forecasts for supply and demand largely unchanged, warning that major uncertainties make the outlook for energy markets highly uncertain. The price of Brent fell by 3.4 percent and the WTI price by 4.2 percent.

At the bond market Yields recovered slightly earlier in the week from Thursday’s decline on inflation data. There was no trading on Friday due to a holiday. The 10-year yield rose by 5.5 basis points to 3.87 percent. Of the gold price appeared almost unchanged.

Opiant drugs are skyrocketing

In the case of the individual values, the proportion was found to be Walter Disney with a minus of 0.8 percent. The “Wall Street Journal” had reported on a position paper to the board of directors of the entertainment group by CEO Bob Chapek, according to which layoffs in the course of cost cutting are likely.

Bee Amazon CEO Andy Jassy starts cutting costs. According to insiders, the online retailer is about to lay off thousands of employees. About 10,000 workers could be affected. In the UK, Amazon is also facing litigation over its practices regarding third-party listings on its website. Compensation of about 1 billion euros is demanded. The stock fell 2.3 percent.

In the user location tracking dispute Google reached an agreement with prosecutors from 40 US states. As they announced, they have agreed with subsidiary Alphabet on a sum of $391.5 million to be paid by the company. Alphabet shares closed 0.7 percent lower.

The shares of Opiant Pharmaceuticals shot up 112 percent to $20.10. British drugmaker Indivior is paying $20 per share in cash for Opiant, more than double Friday’s closing price of $9.50. The offer can even go up to $28. $8 depended on progress in drug development, it said.

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