Forecasts from Intel and Amazon are buoying Wall Street, despite fears of escalation in the Middle East

Forecasts from Intel and Amazon are buoying Wall Street, despite fears of escalation in the Middle East

According to a report from www.deraktionaer.de, the optimistic forecast from Intel and Amazon only temporarily boosted Wall Street at the end of the week. Reports from Israel caused fears of an escalation in the Middle East during trade. Despite strong gains from Intel, the Dow Jones fell into the red, while the Nasdaq 100 was able to defend a small plus.

The Nasdaq technology exchange posted a small gain on Friday despite the week's share price loss, as quarterly reports from companies such as Amazon and Intel generated positive sentiment. In contrast, the oil company Chevron disappointed below the standard values ​​in the Dow Jones. The US Federal Reserve's upcoming key interest rate decision is already causing nervousness among investors.

At the close of trading, the Dow Jones recorded a loss of 1.1 percent to 32,417 points, which means a loss of a good two percent for the week. The S&P 500 fell 0.5 percent to 4,117 points. The Nasdaq 100, which is mainly made up of technology stocks, rose 0.5 percent to 14,180 points after previously reaching its lowest level since the end of May.

According to analyst Jim Reid from Deutsche Bank, thanks to Amazon there has been some easing in the US technology sector. The online trading giant's shares were one of the most sought-after stocks in the Nasdaq selection index and managed to beat sales and profit expectations for the third quarter. The prospects for the important cloud computing business are also encouraging. Reid also sees a high probability that the US Federal Reserve will pause interest rates next week based on the latest economic data from the USA.

Sophie Lund-Yates, senior equity analyst at Hargreaves Landsdown, warns of overheated economic data and a narrative of higher and longer interest rates, which could particularly negatively impact technology companies. They are considered growth companies with primarily future profits that are worth less in a high interest rate environment.

In addition to Amazon, Intel also impressed in the individual stocks sector. The chip manufacturer is expecting an increase in sales again in the last part of the year thanks to increasing demand and the boom in offers with artificial intelligence. Shares of Intel rose 9.3 percent in both the Nasdaq 100 and the Dow.

Chevron, on the other hand, recorded the largest price loss in the well-known Wall Street index, falling by almost seven percent. The oil company reported a surprisingly large decline in profits for the third quarter. Ford also disappointed as the company continues to make heavy losses on its electric vehicles. Ford shares lost over twelve percent in the S&P 100.

The possible effects of these developments on the market and the financial industry are diverse. Uncertainty regarding the Middle East could lead to increased volatility on the stock markets. The positive quarterly reports from Amazon and Intel could increase investor confidence in the technology industry and have a positive impact on the share price of these companies. The possibility of a pause on interest rates by the US Federal Reserve could also have an impact on the market, particularly on companies that benefit from low interest rates.

Source: According to a report from www.deraktionaer.de