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Dow Jones almost 4 percent down

Dow Jones almost 4 percent down
Written by insideindyhomes

Wall Street experiences gloomy day
Dow Jones almost 4 percent down

After the gains at the beginning of the week, the US stock exchanges are experiencing a pitch-black trading day. The Dow Jones index collapses by almost four percent. Investors fear rising interest rates and are pulling out of stocks in droves. The papers of retailers are particularly affected.

Investors are fleeing the US stock exchanges for fear of more drastic interest rate hikes by the Fed and the consequences for the economy. The default index Dow Jones closed 3.6 percent lower on Wednesday at 31,490 points. The tech-heavy one Nasdaq fell 4.7 percent to 11,418 points. The broad one S&P 500 lost four percent to 3923 points.

“Markets don’t like uncertainty,” said Brooke May, partner at wealth management firm Evans May. “It’s unclear how far the Fed will have to go to get inflation under control. Higher interest rates are hurting consumer spending as well as corporate earnings. ” Fed Chair Jerome Powell had earlier reiterated his commitment to fighting inflation and had not ruled out more aggressive rate hikes. Some stockbrokers feared that tightening monetary policy too quickly would plunge the economy into a recession. Therefore, they parted ways in anticipation of falling demand for commodities. Of the Future on US wheat fell 3.7 percent to $12.295 a bushel

Target 153.94

At the companies stood out Target with a price drop of a good 26 percent at times. This is the biggest loss in more than 34 years. The retailer increased quarterly sales to $25.17 billion. Due to rising costs, however, profits fell by half to $2.19 per share. “Target’s numbers show a remarkably similar pattern to Walmart’s,” commented analyst Michael Baker of research house DA Davidson. The increasing costs could not have been fully passed on to the customers. Walmart had overturned its full-year targets after a slump in profits. In the wake of Target, the titles of other retailers such as Kohl’s or macy up to eleven percent.

On the business figures of Lowe’s investors also reacted disappointed. Due to low demand for grills and garden equipment, sales at the hardware store chain fell by a surprisingly strong three percent to $23.66 billion. Similar to rival Home Depot, the profit margins are higher than expected, Davidson expert Baker interjected. In addition, after the adverse weather in April, business can be expected to pick up in May. Lowe’s shares fell more than 5 percent.

Tesla Motors (USD)
Tesla Motors (USD) 709.99

Being kicked out of an index continued Tesla to. The papers of the electric car manufacturer gave way almost seven percent. The index provider S&P Dow Jones Indices has reportedly removed the company from the S&P 500 ESG index. The reason for this is Tesla’s handling of investigations into accidents in connection with the autopilot function of the vehicles and allegations of racism. ESG indices only include companies that meet certain criteria for environmental protection (Environmental), social commitment (Social) and responsible corporate management (Governance).

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