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18.01.202223:22 विदेशी मुद्रा विश्लेषण और समीक्षा: The US session brought losses to Wall Street

US indices are falling on Tuesday following the shares of large technology companies, which are declining due to rising treasury bond yields. At the same time, Goldman Sachs is leading the fall among banks - after publishing quarterly earnings below investors' expectations.

The US session brought losses to Wall Street

Now, in addition to annual reports, treasury bond yields are most affected on the markets. So, the "two-year-olds", which tracks expectations for short-term rates, rose 1% for the first time since February 2020, amid the fact that traders expect a more hawkish position from the Federal Reserve ahead of next week's policy meeting.

Firms with mega-capitalization, including Google Alphabet, Apple, Meta, Amazon and Tesla, fell by a wide range, showing a negative result between 0.6% and 3.7%.

Ten of the 11 major S&P 500 sectors fell in early trading, with the S&P 500 technology indices and, oddly enough, communication services leading the losses, although this segment usually feels good against the background of quarantine restrictions.

"Technology will be divided between companies that make money today and companies that promise to make money tomorrow," said Thomas Hayes of New York, meaning that in light of the tightening of the Fed's policy, investors will be more favorable to stocks of well-established companies, and less to new ones. "Companies that promise to make money tomorrow but don't make money today are going to get a big haircut," he says.

Goldman Sachs shares fell 8.0% after missing fourth-quarter earnings expectations due to weak trading activity, while BNY Mellon shares lost 1.1% after the publication of quarterly results.

Although the decline in super profits that fell into investors' pockets last year is quite natural, the banking index as a whole fell by 1.2% after such news, while the broader financial index fell by 1.6%.

Energy was the only S&P 500 sector that closed in positive territory on Tuesday, as oil prices rose even after it became known that China, at the request of the United States, would once again open its reserve oil storage facilities to fill the global deficit.

As a result, the Dow Jones Industrial Average fell by 553 points (-1.54%), to 35,358.23. The S&P 500 index fell 68.82 points (-1.48%) to 4,594.03, and the Nasdaq Composite Index fell 253 points (-1.70%) to 14,640.69.

It looks like the tech bubble is really blowing away.

For example, a monthly survey conducted by Deutsche Bank showed that the majority of respondents believe that US tech stocks are in a bubble. This is confirmed by a broad decline in tech indexes due to the fact that investors remain more bearish about their forecasts.

For example, before that, the Nasdaq and S&P 500 indexes fell for the second consecutive week on Friday, as bearish sentiment regarding technology and disappointing results from major banks affected US indices, which led to a soft start to the reporting season.

Activision Blizzard shares rose 29.7% after Microsoft said it would buy the video game publisher for $68.7 billion in cash, which would be the largest deal in the sector.

Microsoft shares fell 1.3%, while shares of other gaming companies Electronic Arts, Roblox and Take-Two Interactive rose 0.7-7.3%, creating a mixed overall result in the sector.

Airbnb shares fell 3.4% after Gordon Haskett cut the firm's investment in rental housing, which marks difficulties for the company.

Unfortunately, the falling issues prevailed over the rising ones with a ratio of 3.96 to 1 on the NYSE and with a ratio of 3.87 to 1 on the Nasdaq.

The S&P index recorded 30 new 52-week highs and six new lows, while the Nasdaq recorded 54 new highs and 259 new lows.

Later this week, the US Senate commission will also discuss a bill aimed at restricting the operation of app stores of companies that, according to some lawmakers, control the market too much, including Apple and Alphabet's Google, which jeopardizes short bullish deals against large tech giants.

Bank of America and Morgan Stanley will release fourth-quarter results on Wednesday, which will entail further changes in financial indexes depending on the news. Netflix will begin reporting among major tech companies on Thursday, strengthening or weakening the Nasdaq.

Egor Danilov,
Analytical expert of InstaSpot
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