Dow Jones closes in the red: interest rate fear drives investors to sell

Dow Jones closes in the red
Fear of interest rates pushes investors to sell

Marketers are worried about a further rise in inflation. As the US Federal Reserve announces a U-turn in fiscal policy, many are selling their stocks. Government bonds are growing in popularity.

Fear of rising prices and rapidly rising interest rates continues to have a firm grip on US stock markets. Of Dow Jones index standard values ​​closed down 1.2% on Monday at 34,308 points. The most tech Nasdaq fell 2.2% to 13,411 points. The wide S&P500 lost 1.7% to 4412 points. Investors were eagerly awaiting the inflation figures due on Tuesday.

Nasdaq Compound 13,411.96

Given the drastic increase in energy costs due to the war in Ukraine, experts expected consumer prices in the United States to rise 8.5% in March. The US Federal Reserve has recently signaled that it wants to raise interest rates aggressively to keep rising inflation in check. Faced with this prospect, US investors again shed bonds from their portfolios.

In return, the yield on ten-year Treasury bills rose to 2.784%, the highest level in more than three years. In terms of individual stocks, shares of electric car maker Tesla fell 4.8%.

Musk won’t join Twitter’s board

In China, car sales fell overall in March due to restrictions imposed by the country to contain the novel corona outbreak. Stocks of Chinese rivals listed in the United States Li car and Xpeng fell to 2.4%.

Twitter 43.06

Against the general market trend, shares of the short message service rose in price Twitter by 1.7 percent. Contrary to initial statements, the new main shareholder of Twitter, Elon Musk, ultimately does not want to join the company’s board of directors. This was announced by Chairman of the Board, Parag Agrawal.

Musk’s appointment was to take effect on Saturday. But “Elon announced that very morning that he will no longer be joining the board,” Agrawal wrote on the short message service. “I think it’s for the best.” Were on stockbrokers’ sell lists Nvidia. Shares of the US chip and technology group fell 5.2% after a broker’s downgrade. Despite the positive outcome of the elections in France, European investors are not “on the move” at the start of the week. The Dax lost 0.6% on Monday to 14,192 points. The EuroStoxx50 fell 0.5% to 3839 points.

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