Dow Jones, S&P 500, Nasdaq investors hold back before the Fed meeting – Beyond Meat stocks are in demand

Dow Jones, S&P 500, Nasdaq investors hold back before the Fed meeting – Beyond Meat stocks are in demand

Dow Jones, S&P 500, Nasdaq investors hold back before the Fed meeting - Beyond Meat stocks are in demand
Source: AP

In anticipation of US monetary policy tightening soon, some investors are pulling out of Wall Street. The leading indices Dow Jones, Nasdaq and S&P 500 fell by up to 1.4 percent when they opened on Tuesday.

The central bank is expected to announce an accelerated throttling of its security purchases on Wednesday, said analyst Lukman Otunuga of the online broker FXTM. This fueled speculation and premature rate hikes. “Investors see the likelihood of at least one rate hike by the beginning of May at 73 percent.” Such a step by mid-June at the latest is considered agreed. The unexpectedly strong rise in US producer prices encouraged stockbrokers in their expectation of a tighter monetary policy.

Because the US producers had raised their prices in November at a record pace and thus sent a clear signal of an increased risk of inflation. Because the US producers had raised their prices in November at a record pace and thus sent a clear signal of increased inflation risk. The producer prices rose by 9.6 percent compared to the same month last year. There has not been a stronger increase since these statistics began eleven years ago. The producer prices rose by 9.6 percent compared to the same month last year. There has not been a stronger increase since these statistics began eleven years ago.

Producer prices are an important leading indicator for the development of inflation. In the statistics, the prices are kept ex-factory – i.e. usually before the products are further processed or go on sale. You can use it to give an early indication of the development of consumer prices.

Against this background, investors mainly sold technology stocks. The shares of Amazon, Netflix, the Facebook operator Meta and the Google parent Alphabet fell by around one percent each. Experts say that higher interest rates will devalue future profits for these high-growth firms.

Look at the individual values

The video game retailer’s title – one of the so-called “meme” stocks – rose surprisingly by four percent. As recently as yesterday, Monday, the paper slipped by almost 14 percent to its lowest level since March. The company reported a major quarterly loss last week.

The cinema operator’s share was up 1.1 percent. As recently as yesterday, Monday, the share fell by more than 15 percent. The reason for this price slide are the share sales by CEO Adam Aron and CFO Sean Goodman in the past week.

The share of the manufacturer of vegetable meat substitutes rose by almost seven percent. The analysts at Piper Sandler upgraded the stock from “underweight” to “neutral”. They believe that a nationwide rollout at McDonald’s could be in less than three months.

The shares fell 1.8 percent. CEO Elon Musk had sold more Tesla shares for a good $ 900 million. The stock is up more than 20 percent since its all-time high and the company’s market value has fallen below the $ 1 trillion mark.

The Chinese-based social networking company was fined three million yuan (approximately $ 471,000) by regulators. The company is said to have violated various laws and regulations. Weibo stock fell 2.2 percent.

The shares of the aluminum manufacturer rose 5.8 percent. The company will be included in the S&P Midcap 400 index next Monday. It replaces Hill-Rom Holdings, which is being acquired by Baxter International.

Evercore analysts downgraded the computer manufacturer’s share from “outperform” to “in line”. The experts pointed to the growth in value of Dell of almost 60 percent this year in view of a weakening PC market. Dell shares lost more than two percent.