Nasdaq technology index rises – Airbus cooperation brings Plug-Power shares significant plus

Frankfurt An accelerated rise in inflation in the US dampened sentiment on Wall Street on Wednesday. The Dow Jones index was 0.3 percent weaker at 34,280 points, the broader S&P 500 fell 0.1 percent to 4,346 points. The index of the technology exchange Nasdaq, however, rose by 0.3 percent to 14,513 points.

The already strong rise in prices surprisingly gained further momentum in September. Goods and services cost 5.4 percent more than in the same month last year. Experts had expected the inflation rate to remain at the August level of 5.3 percent.

Although it is not a large overshoot, the market seems to be more concerned in the face of persistently high inflation figures, said capital markets expert Caleb Thibodeau of analysts Validus Risk Management. “If the recent pace of increased inflation continues, it could cause the Fed to begin phasing out stimulus sooner rather than later, which could hurt stocks and other risk assets,” said Nancy Davis, founder of asset manager Quadratic Capital Management.

Financial stocks came under pressure. Shares in Citigroup, Goldman Sachs, Morgan Stanley, Wells Fargo & Co and Bank of America Corp lost up to two and a half percent. Traders pointed to the flattening yield curve on the bond market, which is depressing banks’ profitability.

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Tech heavyweights such as Facebook, Microsoft, Nvidia, Amazon, Google owner Alphabet, Advanced Micro Devices and Tesla grew. Apple, however, fell 1.4 percent. According to a media report, the iPhone manufacturer wants to cut production on its new 13-series model.

Equities from the energy sector were also weaker. Exxon Mobil fell 0.7 percent. Schlumberger, Hess, Devon, APA and Diamondback Energy were among the biggest losers in the industry. Investors in the oil market were worried about the economy, although oil prices were able to break away from their interim lows. The North Sea variety Brent was just down at $ 83.39 per barrel.

The Organization of Petroleum Exporting Countries (OPEC) lowered its demand forecast for the current year, but kept it for 2022. The rise in energy prices, on the other hand, could support the market for oil products, according to Opec.

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JP Morgan: The US bank reported earnings of $ 3.74 per share for the third quarter, well above the consensus estimate of $ 3.00. CEO Jamie Dimon said the quarter went well despite the negative economic impact of the Delta option and supply chain disruptions. Due to the flattening yield curve on the bond market, the shares fell by 2.6 percent.

Blackrock: The asset manager posted adjusted earnings of $ 10.95 per share for the third quarter, beating the consensus forecast of $ 9.35. Revenue also exceeded estimates, despite lowering some fees. Assets under management grew, albeit less strongly than analysts expected. Blackrock’s papers rose nearly four percent.

Delta Air Lines: With an adjusted quarterly profit of 30 cents per share, the airline exceeded the estimates by 13 cents, and sales were also above forecasts. Delta’s quarterly profit was the first since before the pandemic, but the company expects a modest loss in the current quarter due to higher fuel costs. The share fell five percent.

Plug Power: The manufacturer of hydrogen fuel cells rose by 11.8 percent. The company had announced a partnership with Airbus to decarbonise air travel and airport operations. A US airport is to be selected as the first “hydrogen hub” pilot airport.

Qualcomm: The enterprise announced a new $ 10 billion share buyback program. The chip maker’s newly announced buyback is on top of the $ 900 million remaining from a buyback program launched in July 2018. The share gained two percent.

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