ROUNDUP/Stocks New York close: Dow crumbles

NEW YORK (dpa-AFX) – US stock markets showed mixed trends on Wednesday. While the leading indices on Wall Street fell, the majority of technology stocks on the Nasdaq were up. The markets currently lack a clear direction due to a lack of supportive news, wrote Joachim Klement from the consulting firm Panmure Liberum.

The industrial sector initially posted another record high, but soon turned negative and closed 0.70 percent lower at 41,914.75 points. The market breadth also initially reached a new record, but ended 0.19 percent lower at 5,722.26 points. The technology-heavy sector, on the other hand, rose by 0.14 percent to 19,972.61 points.

Most recently, a significant interest rate cut by the US Federal Reserve and the expectation of further monetary easing drove prices up. Investors also hope that the domestic economy can avoid a recession. The “Fed Watch Tool” of the options exchange CME now shows a nearly 60 percent probability of another major interest rate cut of 0.5 percentage points in November.

Shares in car manufacturers General Motors (NYSE:) and Ford (NYSE:) lost 4.9 and 4.1 percent respectively. The shares of electric car manufacturer Rivian (NASDAQ:) also lost 6.8 percent. The US investment bank Morgan Stanley (NYSE:) had made negative comments about the industry as a whole and about the three companies.

In contrast, HP Enterprise (NYSE:) rose by 5.1 percent. The IT company’s shares were founded on an upgrade by the British investment bank Barclays (LON:), which she now recommends as “Overweight”.

Trump Media & Technology shares jumped by more than 10 percent. Major shareholder and US presidential candidate Donald Trump had spoken about his economic plans in the event of an election victory in November. Since the IPO in March of this year and especially since the summer – when Vice President Kamala Harris replaced incumbent Joe Biden as the Democratic candidate – the share price has been on a downward trend, despite temporary recovery phases.

Disappointing quarterly figures for construction company KB Home (NYSE:) resulted in a share price slide of 5.4 percent.

The euro lost a lot of value in US trading compared to European trading. Experts cited better-than-expected data from the US real estate market as the reason for this. The euro was last quoted at 1.1128 US dollars, after hours earlier it had risen to 1.1214 US dollars, the highest it had been traded since last summer. The European Central Bank (ECB) has set the reference rate at 1.1194 (Tuesday: 1.1133) dollars. The dollar thus cost 0.8933 (0.8982) euros.

US government bonds fell. The futures contract for ten-year bonds (T-Note Future) is down 0.30 percent at 114.50 points. The yield on bonds with this maturity was 3.79 percent.