Stress factors put Dow Jones under pressure

Once again, the mood on the US stock markets is deteriorating: The Dow Jones Industrial is expected to decline further on Thursday due to dwindling hopes for imminent interest rate cuts. Adding to this is a significant drop in Salesforce shares. Broker IG sees the benchmark index Dow Jones down 0.9 percent at 38,113 points shortly before trading begins. The tech-heavy Nasdaq 100 is also expected to be down 0.1 percent. The persistently high inflation and the resulting growing doubts about an imminent monetary easing by the US Federal Reserve have caused bond yields to rise sharply this week. High key interest rates keep borrowing costs elevated, which can significantly dampen economic activity. These developments noticeably increase investor nervousness. The VIX index, which measures the volatility of stock markets, is back at the level it was at the beginning of the month. In pre-market trading, Salesforce shares fell by more than 16 percent. The software company is struggling with subdued growth due to the bleak economic situation and has presented a weak outlook. Shares of Agilent Technologies were also under significant pressure pre-market, dropping nearly 13 percent. The technology company had issued a revenue and profit warning. Birkenstock, on the other hand, sent a positive signal: The sandal manufacturer expects positive business development for the full year after a successful quarter. The shares gained more than nine percent in pre-market trading.