Losses at the start of the week, prices on the US stock exchanges stabilized at a low level on Tuesday. The Dow Jones was down 0.4 percent in early trading at 30,407 points. The day before, high inflation, rising interest rates and the resulting fears of recession had pushed the Dow back to its lowest level since the beginning of 2022. The market-wide S&P 500 was down 0.3 percent at 3,742 points. The Nasdaq 100 was down 0.2 percent at 11,265 points.
The stock exchanges received some support from producer prices in very early trading. In May, these did not rise as much as feared over the year. With an increase of 10.8 percent, however, inflation is still very high.
However, looking ahead to Wednesday’s Fed meeting, it’s understandable if buyers are holding back. The Fed could intensify the fight against high inflation. An interest rate hike of 0.50 or 0.75 percentage points is seen as possible on the financial markets. Goldman Sachs expert Jan Hatzius sees another big step coming in July.
The papers recorded high price gains Oracle. According to the results of the final quarter of the financial year, it went up by ten percent. JPMorgan analyst Mark Murphy spoke of surprisingly solid growth at the highest pace since 2011. The software group’s outlook for the 2023 fiscal year is strong, even if a recession appears to be in the offing.
The shares of Fedex with plus 13.5 percent. The shareholders of the US logistics group can look forward to a significantly higher dividend. The quarterly distribution is to be increased by more than half.
It went up 3.7 percent for Twitter. Tech billionaire Elon Musk is reportedly set to hold an online roundtable Thursday with staff at the short-messaging service for which he has made a takeover bid. Recently he had increased his efforts to keep a retreat open. The point of contention is the number of spam and fake Twitter accounts.
It goes further down for cryptocurrencies and subsequently also for the papers of the Coinbase trading platform. JPMorgan analyst Kenneth Worthington removed his recommendation for Coinbase shares and slashed the price target. Coinbase lost 1.6 percent. The company is unlikely to be in the black anytime soon, Worthington said