After the public holiday on Monday, the most important stock market indices start the new stock market week with losses. Little is happening on the bond market in early trading.
New York. Investors in the USA are starting the new stock market week cautiously. The major indices are lower in early trading on Tuesday.
The US standard value index Dow Jones lost 0.8 percent to almost 53,000 points.
The broader S&P 500 lost 0.4 percent to 7,690 points.
The technology-heavy Nasdaq Composite also lost 0.4 percent and was trading at 26,400 points.
The Nasdaq 100, a reflection of the 100 non-financial companies with the highest market capitalization, is little changed.
There was no trading on Wall Street on Monday due to a holiday. Even on Tuesday, the number of stock market-relevant appointments is rather small. Similar to Europe, rising energy prices are dampening the mood of investors.
Over the next few days, monetary policy is likely to become the determining factor in the US markets. Next Friday, the US Department of Labor will publish the initial estimate for the development of inflation in August. Most recently, the inflation rate in the USA was 3.4 percent.
The interest rate decision by the US Federal Reserve (Fed) will follow next week. There is still no clear trend as to whether the monetary authorities will increase interest rates or not. Some central bankers have indicated their preference for this in view of the persistently high inflation.
Investors on the futures markets are also divided. Currently, the group of those who expect a rate hike is slightly in the majority. This is shown by a look at the Chicago Stock Exchange's Fed Watch Tool. Accordingly, almost 60 percent of investors expect the Fed to raise the key interest rate to a range of 3.75 to 4.0 percent.
There was also little movement on the bond market on Tuesday. The interest rate on ten-year US government bonds is 4.77 percent, down two basis points. Two-year bonds yield little changed at 4.37 percent. Rising interest rate expectations had significantly driven up bond yields in recent weeks.
Individual values in focus:
Novartis: The Swiss pharmaceutical company has to accept another setback. In advanced phase III clinical trials with the drug del-desiran against the muscle disease myotonic dystrophy (type 1), Novartis missed the primary study goal. Novartis is losing almost ten percent on the Swiss stock exchange. The shares held in the USA lost almost 13 percent.
Boston Scientific: The biotech company fears a significant impact of a cyber attack on its business figures. The annual targets could also be missed. The stock is losing more than two percent.
Intel: The technology group's titles rose by almost eight percent after an upgrade at the top. Analysts at Northland Capital set the stocks at Outperform from Market Perform.
Lockheed Martin: UBS experts have raised their rating for the defense company to “buy”. The upgrade boosts the stock by more than two percent.
