New York equities outlook: Fear of interest rate hikes slows record hunting

The rising yields in the bond markets for fear of rising inflation depressed investor sentiment, commented analyst Craig Erlam of broker Oanda Europe. The price gains posted the day before faded again, triggered by soothing statements by Fed Chairman Jerome Powell on monetary policy and positive vaccine news from Johnson & Johnson. Investors are more and more convinced that inflation is increasing and causing the central bank to tighten its monetary policy, explained Erlam.

A high demand for technology for data centers and graphics cards caused Nvidia’s sales and profits to jump further in the past quarter. In pre-trading on Thursday, the papers slipped by more than three percent. During the conference call on the numbers, CFO Colette Kress said that the growth is currently the result of the computer games business. Some analysts therefore feared that this could mean that the data center division is expanding a little more slowly.

The Telekom subsidiary T-Mobile US secured 142 licenses for 9.3 billion US dollars at a frequency auction in the USA with a view to the planned network expansion of the new 5G mobile communications standard. Compared to its competitors, T-Mobile US did not have to dig deep into its pockets: AT&T bought around 1,600 licenses for $ 23.4 billion, Verizon acquired 3,500 licenses for $ 45.5 billion. One of the reasons for this is that the frequency equipment of the Deutsche Telekom subsidiary was already considered good. T-Mobile US gained around four and a half percent, AT&T and Verizon lost between half a percent and one percent.

The US vaccine manufacturer Moderna was keeping high research and development costs in the red at the end of 2020, but the strong demand for the corona vaccine is causing sales to explode. Before the trading session, the stocks went up by more than four percent. Moderna wants to expand the production capacities for its corona vaccine. In 2021, the company expects vaccine sales to exceed $ 18 billion.

The excitement surrounding the video game retailer Gamestop is endless in the US financial market. After the shares were temporarily suspended from trading on Wednesday and closed with a plus of 104 percent, it went up by a further 65 percent on Thursday. The vice chairman of Warren Buffett’s investment company Berkshire Hathaway, Charlie Munger, sees the price volatility with great concern. They are signs of an “irritating bubble” that has to end badly at some point. / Ajx / fba

(AWP)

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