For fear of rising interest rates, stockbrokers are withdrawing from risky investments such as cryptocurrencies. The rest of Wall Street is also still nervous. The price pressure in the USA is not abating. The big winner is the parcel delivery company FedEx.
More investors are pulling out of Wall Street after the sell-off at the start of the week. The US blue chips index Dow Jones and the broad S
Nobody wants to lean too much out of the window before the Fed’s interest rate decision, as there is a possibility that it will raise the key rate by 0.75 instead of the signaled 0.5 percentage points. These speculations would be underpinned by the almost eleven percent persistently high rise in producer prices, said Naeem Aslam, chief market analyst at brokerage house AvaTrade.
Against this backdrop, the dollar index, which tracks rates against major currencies, rose as much as 0.4 percent to hit 105.48 points for the second straight day of a 19-1/2-year high. At the same time, investors sold US government bonds again. That pushed the yield on 10-year T-Bonds to an 11-year high of 3.456 percent.
Cryptocurrencies were sold again. Bitcoin and Ethereum temporarily collapsed by more than ten percent. At 22,197 and 1,074 dollars, they were listed as low as ever. “Fear and uncertainty are huge,” said portfolio manager Thomas Altmann from the investment advisor QC Partners. “Anything that involves any kind of risk is sold.” On the other hand, the price of WTI crude oil on the commodity markets rose by one percent to $118.54 per barrel (159 liters). The failure of Russian deliveries cannot be compensated for, said analyst Jeffrey Halley from brokerage house Oanda. Many producing countries invested too little to expand their production capacities.
One of the favorites in the US stock market was Oracle, which posted a large jump in price. The software group had announced quarterly earnings that exceeded market expectations. The outlook for the cloud business also surprised positively, praised analyst Derrick Wood from asset manager Cowen. Thanks to the accelerated growth, the stock still has room for improvement. Oracle titles then rose by more than ten percent. FedEx shares were up more than 14 percent, the biggest one-day gain in nearly 36 years.
