Nasdaq chasing records – investors sell travel stocks for it

Frankfurt Wall Street investors remain in record fever. The Dow Jones index of standard values ​​rose 0.6 percent to 35,811 points.

US President Joe Biden nominated Fed Chairman Jerome Powell for a second term on Monday. The director Lael Brainard, who is also a candidate for the executive chair, is to receive a deputy post.

The broader S&P 500 and the Nasdaq technology exchange index posted new record highs of 4,744 and 16,765 points, respectively. In the further course of trading, however, the technology index then turned into the red and fell to 16,524 points at the halfway point of the New York trading day, a minus of 0.3 percent. The Dow Jones and S&P 500 stayed in the black.

Above all, the papers of the major US banks were in demand. According to stockbrokers, choosing Powell was seen as a cheaper choice for the financial sector. Brainard, unlike him, would have cracked down on banks by regulating and controlling mergers and acquisitions, said dealer RJ Grant of the finance house Keefe, Bruyette & Woods. In addition, investors speculated on interest rate hikes in the coming year. Wells Fargo stocks were among the biggest winners, gaining 3.7 percent.

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The prices of US Treasuries fell, while yields rose in return. For two-year US bonds, the value jumped to 0.57 percent and thus reached new highs. The US money market is now pricing in a full rate hike of 25 basis points for the Fed meeting in June, with a second hike expected in November.

The gold price came under pressure, which fell by a good two percent to $ 1805.

The dollar index, which measures the US currency against other major currencies, climbed to 96.30 points and was not higher than it has been since July 2020.

After the decision, investors turned their attention to the December meeting of the Fed and whether the pace of slowing down bond purchases would be increased, said Matt Weller, strategist at Forex.Com broker.

Look at individual values

Apple: A positive analyst vote helped the tech giant’s stock hit a record high of $ 165.70. JP Morgan anticipates possible improvements in iPhone 13 shipments in the coming months.

Tesla: Shares in the electric car maker rose 2.8 percent. CEO Elon Musk had announced via Twitter that the Model S plaid “probably” should be available in China around March.

Astra Space: The title of the satellite transporter start-up was soaring. At the weekend, the US company succeeded in launching its first rocket into orbit. The shares took off by more than 35 percent.

More: Twelve stocks that investors can use to invest in the future.

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