Worries about rate hikes weigh on Wall Street.
(Photo: AP)
Frankfort, New York On Wall Street, investors dared to buy shares again on Monday after the losses in the old week. The Dow Jones index of standard values gained 1.8 percent to 31,831 points by midday. The broader S&P 500 rose 1.4 percent to 3,957 points.
The Nasdaq technology exchange index rose one percent to 11,458 points. “Today there is a counter-movement to the sell-offs of the past few months. Markets are looking for a tradable bottom in a potential bear market rally here,” said Jeff Schulze, investment strategist at ClearBridge Investments. Since the beginning of the year, the S&P has lost around 18 percent.
Rising bond yields buoyed US financials. The industry index climbed by more than six percent. The US Federal Reserve recently signaled that it intends to raise interest rates by half a percentage point at each of the next two meetings.
After more optimistic earnings guidance, JPMorgan shares gained momentum, gaining 7.9 percent to a two-and-a-half week high of $126.57. At an investor conference, the major bank raised its forecast for interest income and reaffirmed its profitability target.
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The lender expects net interest income excluding the market segment (NII) to be $56 billion this year. “There is some optimism that too much negativity has been priced in regarding the coming quarters and the earnings potential of the banks,” said Schulze.
Meanwhile, the owners of the Chinese travel agency Didi sealed the planned withdrawal from Wall Street. The Uber competitor had drawn the displeasure of the Chinese authorities with its stock exchange plans. Didi shares were little changed Monday in New York at $1.505. Since the beginning of the year they have lost more than 70 percent.
Individual values in focus:
Electronic Arts: EA shares are up 2.5 percent. Previously, Puck News reported that the company was actively looking for a buyer or merger partner. EA has reportedly been in talks with Walt Disney, Apple and Amazon, among others.
Game stop: The video game retailer has launched a digital wallet for cryptocurrencies and NFTs. Shares fall 1.6 percent.
Boeing: Boeing’s Starliner spacecraft successfully docked with the International Space Station over the weekend. The stock rose by around two percent.
Autodesk: The stock falls more than 8 percent. The Royal Bank of Canada (RBC) previously cut its price target on the stock to $255 from $295 per share. RBC said the design software company needs to establish consistency in its results to boost investor confidence.
GeoVax Labs: Shares in the smallpox vaccine and drug maker shot up 48 percent. The United States has identified its third suspected case of monkeypox virus infection. The World Health Organization (WHO) expects the numbers to increase and is expanding surveillance to countries where the disease does not normally occur.
US stock market expert Koch: “Wall Street is concentrating on the sunny side”
More: Fed chair does not rule out more aggressive action to keep inflation down