Concerns about interest rates have weighed on the US stock exchanges recently.
(Photo: AP)
Frankfurt US investors initially pushed aside their concerns about interest rates and the economy on Thursday and grabbed shares. The Dow Jones index of standard values closed 1.3 percent on Thursday afternoon at 33,248 points. The broader S&P 500 closed 1.8 percent higher at 4,176 points. The index of the technology exchange Nasdaq closed up 2.7 percent at 12,316 points.
Investors were particularly interested in large tech companies such as Apple, Google’s parent company Alphabet and Amazon. Stockbrokers eagerly awaited the official labor market data on Friday. The first signals came from the data from the personnel service provider ADP. Accordingly, 128,000 jobs were created in May, experts had expected an increase of 300,000. If the US labor market should defy the weakening economy, the US Federal Reserve will probably not slow down as hoped, said stockbrokers.
Fed Deputy Chairwoman Lael Brainard also told CNBC that she sees little reason for a pause in interest rate hikes in September. “There’s a lot of confusion. With so much uncertainty, by July it will be a little clearer what the Fed must or will do,” said Kenny Polcari, of wealth advisor Kace Capital Advisors.
Inflation and rising energy prices also remained the focus of the financial markets. Oil prices turned positive on Thursday after the OPEC+ export cartel agreed on higher production quotas for the summer months. The group, which includes the OPEC members as well as the producer country Russia, decided to raise 648,000 barrels per day (bpd) for the months of July and August.
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Actually, increases of 432,000 bpd were planned for the three months to September in order to gradually reverse the funding cuts decided in 2020 in the wake of the corona pandemic.
Tense situation on the energy markets
Brent crude oil from the North Sea was then listed 1.1 percent higher at $117.55 per barrel (159 liters). The situation on the energy markets remains tense, said market strategist Christian Henke from the trading company IG. If the price continues to rise, the spiral of inflation could turn faster again and cause the central banks to raise interest rates more significantly than the financial markets would like.
US stock exchange expert Koch: “Solid US dollar causes sales disappointment in Corporate America”
Individual values in focus
Ford: Ford was one of the winners on the stock market. The carmaker’s paper rose by around two and a half percent. The prospect of multi-billion dollar investments for its manufacturing facilities in Michigan, Ohio and Missouri went down well with investors. In the car sector, Tesla also stepped on the gas. The titles climbed more than six percent.
Microsoft: On the other hand, a forecast reduction for the fourth quarter from Microsoft depressed the mood. The hardware and software developer conceded his sales and earnings targets and justified this with currency burdens as a result of the recent rise in the dollar. The papers fell by around three percent, but were up 0.79 percent after the close of trading.
Hewlett-Packard: Hewlett Packard also disappointed investors with its quarterly figures and forecasts. The papers lost more than five percent.
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