EA surprisingly significant price increase in January scared investors on the US stock exchanges on Friday. Concerns about more significant rate hikes by the US Federal Reserve boiled up again. The Dow Jones Industrial lost 1.02 percent to 32,816.92 points.
The previous annual profits have thus disappeared into thin air. Wall Street’s most popular index is back to where it was on December 22nd. In the course of the week it posted a minus of 3.0 percent.
The broad S&P 500 lost 1.05 percent to 3970.04 points. The Nasdaq 100 fell 1.73 percent to 11,969.65 points. It fell below the 12,000 point mark for the first time this month. During the week, the selection index of technology stocks fell 3.1 percent. Technology stocks usually react more strongly to central bank interest rates than so-called standard stocks.
The PCE price index, which is determined on the basis of consumer spending and which the Fed pays particular attention to, not only rose more significantly than in December. It was also above market expectations, which should give the central bank pause.
In the Dow, Boeing shares lost 4.8 percent, bringing up the rear among the 30 values. The aircraft manufacturer has to suspend deliveries of its important long-haul jet 787 Dreamliner again. According to the FAA, additional investigations into a fuselage component are the reason.
JPMorgan stock was among the few winners, up 0.9 percent. The US bank Morgan Stanley raised its price target for the competitor’s paper from 167 to 173 US dollars. JPMorgan is currently valued at just under $411 billion.
On the broad Nasdaq, Beyond Meat stock gained 10.2 percent. The maker of meat substitute products topped expectations in the fourth quarter, trimming its loss per share more than expected.
In contrast, shares in Nektar Therapeutics collapsed by half. A phase II study of the drug Rezpeg for the treatment of the autoimmune disease SLE missed the primary endpoint and thus also the high efficacy hurdle set by partner Eli Lilly. Both pharmaceutical companies therefore decided not to start the phase 3 study. Eli Lilly lost 1.8 percent.
The euro was trading at $1.0547 at the US market close. The European Central Bank set the reference rate at $1.0570 (Thursday: $1.0616) in the afternoon. The dollar had thus cost 0.9461 (0.9420) euros.