Wall Street Opens Significantly Lower – US Consumer Data Fuel Interest Rate Concerns

The previous day’s gains on the US stock markets will probably be followed by clear losses again on Friday due to interest rate concerns. Investors paid close attention to the published data on the core rate of consumer prices, which the US Federal Reserve pays close attention to in its monetary policy. The so-called PCE deflator was slightly higher than experts had expected. Investors take this as a sign that the high inflation is not abating and that the monetary watchdogs remain under pressure to act.
For the Dow Jones Industrial, broker IG’s estimate suggests a discount of one percent to 32,829 points an hour before the start. The fluctuations remain stronger among the technology stocks, which usually react more strongly to the interest rate rate of the Fed. The Nasdaq 100, which is characterized by this industry, was valued 1.6 percent lower at 11,989 points. It threatens to fall below the 12,000 point mark for the first time in February.
Among individual stocks, Beyond Meat stocks took the spotlight, jumping 11.6 percent premarket. The meat substitute manufacturer topped expectations in the fourth quarter and reduced the loss per share more than planned. The market took this as an indication that the company was making progress on the path to profitability.
The situation at Nektar Therapeutics is completely different, where the shares collapsed by 40 percent before the market. Investors were caught flat-footed when a Phase II trial of the drug Rezpegaldesleukin in patients with a specific form of butterfly lichen failed to meet its primary endpoint. The analysis firm Jefferies took this as an opportunity to downgrade the shares to “underperform”.
Among the Dow stocks, premarket eyes were on Boeing. With a discount of 3.3 percent, they reacted to the fact that the aircraft manufacturer had to suspend deliveries of its important long-haul jet 787 Dreamliner again. According to the FAA, additional inspections of a fuselage component are the reason.
Losses are looming on the stocks of Chinese technology groups listed on the Nasdaq: The course of the search engine Alibaba, for example, fell by 3.5 percent before the market, while Netease even went down by 5.9 percent. Here it was said that the latest sector figures from China lacked conviction. Netease, for example, missed expectations on the profit side.



