Tech Companies Sharply Lower on Wall Street

Stock markets in New York started trading with losses on Tuesday. Tech companies, in particular, went on sale. In addition, interest rates are rising, making these equities, which are valued primarily based on expected growth, less attractive.

 

The Federal Reserve recently announced that the first-rate hikes could come as early as the end of 2022, earlier than initially expected. In addition, the Fed’s buying program, which causes low interest rates, will also be phased out shortly. Among other things, the yield on US bonds is rising because the markets are preparing for this.

Of the best-known stock market indicators in New York, tech stock Nasdaq fell the hardest, with 1.6 percent to 14,719 points. Heavyweights Amazon, Apple, Microsoft and Google parent Alphabet fell to 2.4 percent. The Dow Jones Industrial Average lost 0.3 percent to 34,752 points. The broad S&P 500 fell 0.9 percent to 4402 points.

Eyes are also on the forum for central bankers organized by the European Central Bank (ECB) in Sintra, Portugal. ECB President Christine Lagarde warned that stimulus measures should not be tapered too quickly in response to a spike in inflation, which is likely to be temporary.

Oil prices rose further after a new report from oil cartel OPEC. The alliance of oil-producing countries expects the oil demand to rise sharply in the coming years. As a result, a barrel of American oil became 1 percent more expensive at $ 76.23 a barrel. Brent oil rose 0.7 percent to $80.06 a barrel. It is the first time since October 2018 that the USD 80 limit has been broken. Oil companies such as Chevron, ExxonMobil and ConocoPhillips gained up to 2.4 percent in the wake of oil prices. Baker Hughes, a service provider to the oil industry, rose 3.3 percent.

Ford, in turn, rose 3.5 percent. The automaker is investing another $11.4 billion in developing electric cars. To this end, the group is collaborating with the Korean SK Innovation, which is collaborating on new battery factories.

Pfizer could count on interest. Together with development partner BioNTech (minus 5.6 percent), the pharmaceutical has presented research results to the American drug watchdog FDA about the effect of their corona vaccine in children between 5 and 11 years. As a result, the stock lost nearly 2 percent.

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