Investors on Hold Ahead of Fed Decision, Mixed Corporate News

Midweek, the United States stock exchanges presented a mixed picture ahead of the Federal Reserve's decision on the key interest rate. The Dow Jones Industrial Average remained virtually stationary, with a marginal gain of 0.01 percent at 39,116 points. Similarly inconspicuous was the performance of the S&P 500, which dropped slightly by 0.04 percent, ending at 5,176 points. The Nasdaq 100, which has a stronger focus on technology, recorded a slight decline of 0.03 percent to 18,027 points. Market observers largely agree that the central bankers will probably maintain the interest rate range between 5.25 and 5.50 percent. For many investors, more significant than the interest rate decision itself are the accompanying comments and the subsequent appearance of Fed Chairman Jerome Powell. From these events, investors hope to gain clarity on the likelihood of future interest rate cuts. Particularly, the forecasts for the future course of interest rates are in focus. Currently, UBS is predicting three interest rate reductions this year, and a retraction of these expectations to two cuts could have noticeable consequences for the stock and bond markets. In corporate news, semiconductor giant Intel turned initial gains into losses. Initially triggered by the U.S. Department of Commerce's commitment to using billion-dollar subsidies for expanding production capacities, the stock eventually fell by 1.3 percent. Boeing, on the other hand, managed to lead the Dow Jones with a gain of 2.3 percent, despite ongoing challenges in its own aircraft production, which is expected to result in significant cash outflow in the first quarter. The biotechnology company Biontech, which primarily trades its shares on the U.S. market, delivered disappointing results due to waning demand for its Covid-19 vaccine and dragged down its competitor Moderna in a downward spiral, recording a drop of 2.9 percent. Shares of Nasdaq Inc also took a downturn, losing 3.3 percent, influenced by the sale of shares by the Dubai bourse, which intends to realize a significant profit from the transaction. In the small-cap sector, shares of Mobileye stood out with a price gain of 3.7 percent, driven by the announcement of an intensified collaboration with automotive giant Volkswagen for faster developments in the field of driver assistance systems.