US stock markets weighed down: Experts see subdued interest rate optimism and concerns about the Middle East situation. Nasdaq and Dow Jones in the red.

US stock markets weighed down: Experts see subdued interest rate optimism and concerns about the Middle East situation. Nasdaq and Dow Jones in the red.

According to a report from www.tagesschau.de, subdued interest rate optimism and concerns about the situation in the Middle East have weighed on US stock markets. US investors will probably have to live with high interest rates for a while, which will also have an impact on the European markets. The Stoxx 600 Technology Index lost significantly and is the weakest sector so far in the new stock market year. In the DAX, shares from chip producer Infineon lost around 3.9 percent, and Siemens shares were also 3.6 percent weaker.

The majority of Wall Street investors are probably waiting for new economic and labor market data that could provide further information about economic and monetary policy developments. In addition, increasing tensions in the war between Israel and Hamas are causing further uncertainty.

After the highly anticipated meeting minutes of the Federal Reserve (Fed) were released, markets were cautious. The Fed has promised an end to interest rate hikes, but the restrictive stance should be maintained for the time being until inflation falls clearly and sustainably. The timing of interest rate cuts remains uncertain, but a first interest rate cut of a quarter of a percentage point is expected on the futures markets in March.

The US Federal Reserve has therefore announced possible interest rate cuts, which will have an impact on the foreign exchange markets. The hope of lower key interest rates had strengthened the euro in recent weeks, but currently the interest rate cut fantasy in the USA seems to be waning. This is also reflected in the fact that the dollar remains in demand in times of crisis, causing the European common currency to lose value.

The changes in the USA also affect the German stock market. The DAX fell significantly in the afternoon due to weak Wall Street and closed with a loss. This can be attributed to uncertainty regarding the Fed's interest rate policy and increasing tensions in the Middle East.

According to the ISM US Industrial Purchasing Managers' Index, US industrial sentiment improved slightly more than expected in December, but the indicator has remained below the 50 point threshold for the 14th consecutive month, indicating a contracting industry. This means that no positive momentum appears to be building up in the sector, which in turn does not fundamentally call into question the US Federal Reserve's expectation of falling key interest rates.

These developments in global markets indicate that investors are acting with increasing caution as uncertainty about economic and monetary policy developments remains. Tensions in the Middle East and changes in US interest rate policy will have a significant impact on the financial market in the coming weeks.