NEW YORK (dpa-AFX) - Fears of inflation and interest rates drove investors on Wall Street to flight on Tuesday. Rising raw material prices as well as the upcoming announcement of current price data from the United States on Wednesday caused increasing nervousness. The shares on the technology exchange Nasdaq, however, were able to recover from a weaker start to trading.
The Dow Jones Industrial , which the day before had risen above the mark of 35 points to a further record high for the first time, closed on Tuesday with a minus of 000 percent lower at 1,36 points. The market-wide S&P 34 lost 0,87 percent to 4152,10 points. The tech-heavy Nasdaq 100 dropped 0,06 percent to 13 points after dropping 351,27 percent at the start of the week.
Despite weak signals from the US labor market, inflation concerns are on the stock marketn returned to the main stage, noted market expert Timo Emden. Investors also associate this with the fear of rising interest rates, which could worsen financing conditions and make bonds more attractive as an alternative to stocks. In addition, higher interest rates put pressure on the valuation of stocks in investors' forecast models, because future profits and cash flows then have a lower present value when interest rates rise.
It is therefore with uncertainty and tension that we are waiting for the price data from the USA, which will be published on Wednesday. A substantial jump above the Fed's inflation target is expected for April. The development is in part not surprising, because since prices collapsed a year ago in the first corona wave, the current normalization is ensuring high annual rates. However, this statistical base effect is reinforced by the current supply bottlenecks for preliminary products and raw materials.
Among the individual values, the shares of Palantir Technologies gained 9,4 percent. The software provider for the analysis of large amounts of data published its figures for the first quarter. This was partly above the average analyst estimates, partly below. Sales were higher than expected.
Sales and earnings figures for the past quarter were also available from L Brands. In addition, the clothing company announced that it wanted to split its brands Victoria's Secret and Bath & Body Works into two independent listed companies. The shares fell by 1,8 percent.
The Euro zeigte sich im US-Handel relativ stabil. Zuletzt kostete die Gemeinschaftswährung 1,2147 US-Dollar. Die Europäische Zentralbank (EZB) hatte den Referenzkurs auf 1,2170 (Montag: 1,2169) Dollar festgesetzt. Der Dollar hatte damit 0,8217 (0,8218) Euro gekostet.
US-Staatsanleihen gaben nach. Der Terminkontrakt für zehnjährige Treasuries (T-Note Future) decreased by 0,11 percent to 132,45 points. The yield on ten-year bonds rose to 1,62 percent.