Frankfurt/New York, Dec 30 (Reuters) – On this last trading day of the crisis year 2022, U.S. investors are touching stocks only with pointing fingers. The Dow Jones standard values index lost 0.6% to 33,027 points on Friday in the early afternoon in New York. The broader S&P 500 fell 0.7% to 3,821 points. The Nasdaq technology exchange index fell 0.8% to 10,398 jobs.
Fears of a possible recession following major rate hikes by the US Federal Reserve dampened sentiment again. Investors are now expecting further impetus from the economic figures for the coming week. “Data towards the end of 2022 was not as encouraging as hoped, and communications from the Fed and other institutions continue to be more hawkish than investors would like,” said analyst Craig Erlam. market at Oanda.
Investors were also concerned about the uncertainty surrounding the situation in China after the easing of the strict corona policy. The number of infections is currently increasing drastically. However, since there are hardly any more tests, these are not reflected in the official figures. Analysts therefore assume that the world’s second largest economy will not recover before the end of the first quarter of 2023 at the earliest.
GROWTH EQUITIES FOLLOW BONDS – OIL VOLATILITY
Against this backdrop, investors eliminated US government bonds from their portfolios. The yield on 10-year US10 bonds climbed to 3.8862% from 3.835% the previous day. That pushed up tech stocks like Apple, Amazon and Facebook parent Meta, which lost as much as 1.4%. Rising inflation and rising interest rates will devalue the future earnings of these high-growth companies, experts say.
“Disheartened fans of this year’s US tech stocks took all the remaining confidence in their hands yesterday after an analyst recommendation for Tesla shares was beaten. After the crash, entry was said to be attractive,” Jochen said. Stanzl, analyst at online brokerage CMC Markets. Investors reportedly carried that message to many other tech stocks, which ended up falling just as sharply. “This behavior is not necessarily conclusive.”
After a brief dip, oil prices turned positive again. The reasons for this were travel at the end of the year and the Moscow government’s ban on exporting oil to countries that sanctioned Russia. Brent rose 1.4% to $84.61 a barrel (159 liters) and WTI climbed 1.2% to $79.35 a barrel. “The past year has been a banner year for commodity markets as unexpected supply uncertainty has led to increased volatility and high prices,” said ING Bank analyst Ewa Manthey. “But 2023 will probably also be a year of uncertainty.”
No New Year spirit on Wall Street
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