No new records are in sight on the US stock exchanges.
(Photo: AP)
Frankfurt / New York In the run-up to the US Federal Reserve meeting, investors on Wall Street were a little more cautious than they were last time. Although the indices reached new records on Monday, they then crumbled again. The Dow Jones index of standard values closed 0.3 percent higher to 35,913 points. The technology-heavy Nasdaq advanced 0.6 percent to 15,595 points. The broad S&P 500 gained 0.2 percent to 4613 points.
Investors expect that the Fed will likely announce the reduction of its monthly bond purchase program in the middle of the week. This operation to shut down bond purchases, known in technical jargon as tapering, marks a turnaround in monetary policy that has already triggered speculation on the financial markets that interest rates will rise in the next year.
According to strategists, the latest economic data gave the central bank no reason to deviate from its course: despite a shortage of materials, US industry hardly lost any momentum in October. The ISM purchasing managers index fell by 0.3 to 60.5 points, which is less than expected.
A largely successful profit season brightened the mood fundamentally. “The point is that profits are much better than expected, and despite some disappointment with the forecasts, investors are focusing on it,” said portfolio manager Robert Pavlik of wealth manager Dakota Wealth.
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The agreement between the EU and the US in the dispute over steel and aluminum imports encouraged investors to enter the sector. Without this, punitive tariffs on US products such as whiskey and motorcycles would have been due on December 1st. Harley-Davidson titles rose more than nine percent.
Heavy weight stocks from the technology sector helped the overall market up. Tesla rose more than eight percent. Shares in the electric vehicle companies Fisker, Lordstown and ElectraMeccanica Vehicles also rose strongly. Meta, formerly Facebook, was up almost two percent.
Energy values were also in demand. Oil prices moved up on the prospect of picking up demand. The North Sea variety Brent rose by around one percent to $ 84.58 per barrel. “The fundamentals have not changed, and the oil market will remain tense in the short term,” said analyst Stephen Brennock from oil broker PVM Oil
Look at further individual values
Tesla: Tesla shares continued their record rally at an ample pace. The shares of the electric car manufacturer expanded their plus to 8.5 percent by the end of trading and jumped above the price mark of 1200 US dollars for the first time.
Facebook: The Facebook shares were traded under the new name Meta Platforms for the first time after the renaming – and with an increase of two percent they remained on the recovery course.
Alphabet: In the case of the record-high papers of the Google parent company, profit-taking began in the course of Monday. In the end, the two classes of shares fell by around three percent.
Moderna: Moderna shares, on the other hand, fell by 2.3 percent because the group has now to wait longer than hoped for a possible approval of its corona vaccine for young people in the United States. The corresponding review process for the twelve to seventeen age group should not be completed before January.
Novavax: The preliminary approval of Novavax’s coronavirus vaccine in Indonesia gave the pharmaceutical company a jump in price. The shares rose nearly 16 percent. Indonesia is the first country to release this serum.
More: The new cold war: the conflict between China and the United States divides East Asia into two power blocs