Tuesday, February 27

Dell Falls on Wall Street After Major Round of Layoffs

Dell Technologies was lowered on the New York stock exchanges on Monday. The American computer manufacturer is cutting about 6,650 jobs to cut costs.

The company is struggling with a sharp decline in demand for PCs as consumers have become more cautious about spending due to high inflation. The job cuts amount to about 5 percent of Dell’s global workforce. The stock lost 2.9 percent.

The overall mood on Wall Street remained negative. On Friday, the better-than-expected US jobs report already caused share price pressure. In the largest economy in the world, many more jobs were added in January, causing unemployment to fall to the lowest level since May 1969. Interest rate fears flared up again as a result. However, the strong labour market gives the Federal Reserve more room to raise interest rates and keep them high for longer to combat inflation.

Rising political tensions between China and the US also caused reluctance. According to the Chinese foreign ministry, the American decision to shoot down the alleged spy balloon has “seriously damaged” the relationship between the two countries. In addition, a speech from Fed President Jerome Powell is expected on Tuesday.

Shortly after the start, the Dow Jones index was 0.3 percent lower at 33,824 points. The broad S&P 500 lost 0.5 percent to 4115 points, and the tech indicator Nasdaq fell 0.8 percent to 11,914 points.

Tyson Foods fell 5.4 percent. The meat producer recorded less turnover and profit last quarter than experts had expected. Newmont fell 4.9 percent. The gold mining company has made a takeover offer of USD 17 billion for its Australian counterpart Newcrest Mining.

Tesla won 2.2 percent. CEO Elon Musk did not mislead investors when he announced on Twitter in 2018 that he intended to take the car company Tesla he runs off the stock exchange. That is what the jury determined on Friday in the case investors had brought against him. The investors claimed Musk’s tweet cost them billions.

Payment company PayPal lost 3.3 percent after an advisory cut by investment bank Raymond James. Music streaming service Spotify benefited from an advisory increase by Wells Fargo and climbed 2.4 percent.

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