The Tech Companies Went Down Again on Wall Street

The tech companies went down again on a red-coloured Wall Street on Tuesday amid investor concerns about rising inflation and higher interest rates.

 

The energy sector on the stock exchanges in New York was also under pressure from falling oil prices.

If inflation soars, it could mean that the Federal Reserve will increase interest rates faster, which would be particularly unfavourable for tech stocks. Big names like Amazon, Apple, Google, mother Alphabet and Facebook lost up to 2.3 percent. Tesla went down 4.5 percent.

Oil and gas producers ExxonMobil and Chevron fell to 1.9 percent. ConocoPhillips lost 2.6 percent. The shareholders of the American oil company vote on a climate resolution. In addition, steel group US Steel fell 2 percent due to fears of higher raw material prices. Aluminium company Alcoa fell 3.4 percent.

Shortly after opening, the Dow Jones index recorded a minus of 0.8 percent at 34,478 points. On Monday, the leading indicator broke through the 35,000 point limit for the first time but later dropped again. The broad S&P 500 fell 1.2 percent to 4,136 points, and the Nasdaq technology exchange lost 1.8 percent to 13,113 points.

There is also attention for L Brands, the parent company of lingerie brand Victoria’s Secret. L Brands will separate the division from the care products division, Bath & Body Works. L Brands will thus consist of two separate listed companies. The share fell 2.8 percent.

In addition, big data company Palantir Technologies could count on interest after figures and expectations. Palantir, which cooperates with intelligence services in the fight against terrorism, was reduced by 2.8 percent.

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