The New York stock exchanges opened lower on Wednesday. Wall Street investors are looking at inflation data from the United States which turned out to be much higher than expected. In recent days, fears of a sharp rise in inflation and rising interest rates have also caused prices to drop on stock exchanges, especially for tech funds.
US inflation was 0.8% on a monthly basis in April. This is the biggest increase since 2009 and is expected to be 0.2%. If inflation rises quickly, the Federal Reserve, the US umbrella of central banks, could act to raise interest rates faster. This is particularly unfavorable for technology companies that have recently lost value. Apple, Google Parent Alphabet, Microsoft, Tesla and Facebook were up to 1.5% in the red.
Banks, on the other hand, benefit from higher interest rates. This created benefits for major US banks such as Citigroup, Bank of America, JPMorgan Chase, Wells Fargo, and Goldman Sachs of up to 2.4%.
Dow Jones Index
Shortly after its opening, the main Dow Jones index registered a loss of 0.3% to 34,177 points. The large S&P 500 lost 0.5% to 4,129 points and the Nasdaq technology gauge fell 1.2% to 13,186 points.
Amazon showed less than 0.8%. In 2017, the European Commission wrongly asked the Luxembourg government to claim 250 million euros in arrears tax plus interest from the online store. This was decided by the General Court of the European Union in a case brought by the Luxembourg government and Amazon against the decision of the day-to-day administration of the EU.
Computer game maker Electronic Arts (EA), known for FIFA soccer games, offered pretty good numbers and prospects to investors. The share increased by 0.4 percent. The TV streaming service FuboTV gained more than 14% after an increase in revenue forecasts.
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