With earnings season underway, mixed US tech signals and the news of German tanks in Ukraine, market sentiment is collapsing. Wall Street ready to crash?
they collapse me stock futures usa before Wall Street start the session on January 25th.
Recent earnings reports from companies like Microsoft Corp. raised health concerns big tech Americans and investors are wary that Berlin’s decision to approve the re-export of German-made tanks could trigger an escalation in the war in Ukraine.
We look with caution and concern at the corporate profits of American power, but also at the unfolding of the conflict. Scholz’s painful choice could exacerbate a very tense atmosphere.
Technology and geopolitics: what will bring disaster to Wall Street?
Futures indicated that Wall Street was about to take a beating, with the Nasdaq 100 contracts down more than 1.61% and the S&P 500 only marginally better.
The two-day demonstration of the nasdaq it stalled on Tuesday after Microsoft warned of slowing revenue growth in its cloud computing business and other big names like 3M Co. and chipmaker Texas Instruments Inc. also disappointed investors.
Shares in Microsoft and other tech companies like Salesforce Inc., Tesla Inc. and Amazon.com fell 1% to 2% in pre-market trade in New York.
The investors now awaiting updates from companies like Tesla and IBM. A gloomy business outlook, a looming US recession and fears of an escalation in the Ukraine-Russia War they’re all contributing to a stock pullback, according to Kenneth Broux, the company’s general strategist.
The market is definitely worried about the slowdown in the growth of usefulmainly in technology, so the feeling is that the market wants to continue selling technology and dollars, said Broux. “But a huge risk now comes from Ukraineif there is an escalation of the conflict and Europe is drawn into the war”.
The flight to safe-haven assets has boosted bonds, especially in Europe where yields on German 10 year debt they were down five basis points. The Dollar steadied as global moods darkened after Germany’s pledge to supply Ukraine with more than 100 Leopard 2 tanks.
There geopolitics – and all the risks associated with sudden shifts in the West’s strategy against Russia – is dominating the global economic and financial landscape. And the facilities are not good.
Source: Money It