2023-11-10 00:06:28
Following Fed Chairman Jerome Powell’s highly anticipated speech, US stock markets closed in the red on Thursday. The Dow Jones index of standard stocks fell 0.7 percent lower to 33,891 points in trading. The technology-heavy Nasdaq fell 0.9 percent to 13,521 points. The broad S&P 500 lost 0.8 percent to 4,347 points.
The new fears about interest rates were triggered by statements from US Federal Reserve Chairman Jerome Powell that the Federal Reserve is not completely convinced that it has tightened monetary policy sufficiently. The Fed chief assured in his speech at an International Monetary Fund (IMF) conference in Washington: “If it is appropriate to further tighten monetary policy, we will not hesitate to do so.” After the latest US labor market and inflation data and statements from Fed officials, the financial markets actually assumed that the interest rate peak had been reached in the USA.
At the same time, Powell reiterated that the central bank would act cautiously. Decisions would be made “meeting by meeting.” There is still a long way to go in the fight for price stability. Powell also made it clear at the conference that the days of rapid interest rate hikes were over: “Speed is no longer the main thing,” said the Fed chief, adding: “Of course we don’t want to go too far.”
Poor under pressure, Walt Disney asked
In terms of individual values, the shares of the chip designer Arm fell by a good five percent. Analysts expressed doubts about the company’s valuation after a weak outlook. On the other hand, Nvidia was in demand with an increase of almost one percent. Local media had reported that the semiconductor manufacturer plans to launch three new chips in China.
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Investors also stocked up on Walt Disney. The shares jumped 6.9 percent. Theme parks in Shanghai and Hong Kong gave the US entertainment group a profit above experts’ expectations.
Meanwhile, a negative analyst comment weighed on Tesla. The electric car manufacturer’s papers fell by 5.5 percent. The experts at the major London bank HSBC set it to “Reduce” in an initial assessment. The fact that Tesla sees itself as an inventor company and is working on many new technologies makes the prospects for the share difficult to assess.
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