New York equities close: Dow and S&P 500 record after inflation data | 08/11/21

NEW YORK (dpa-AFX) – In the USA, the record run on Wall Street continued on Wednesday. Investors reacted with relief that the already quite high inflation rate in the United States has not increased any further. In addition, the Democrats in the US Senate presented a rough spending plan for another billion dollar investment package. However, it is quite uncertain whether it will actually go through Congress.

The Dow Jones Industrial (DJI) (Dow Jones 30 Industrial) climbed above the 35,500 mark for the first time shortly before the close of trading. Ultimately, it closed with an increase of 0.62 percent to 35,484.97 points. The S&P 500 was up just under 4450 points in early business. He ended the day with a plus of 0.25 percent to 4447.70 points. The technology-heavy selection index NASDAQ 100 turned into the red, however, and lost 0.17 percent to 15027.76 points. His last record high so far comes from last week.

“The big surprise in the US inflation did not materialize,” wrote portfolio manager Thomas Altmann from asset manager QC Partners. In a month-on-month comparison, the upward trend in prices has also slowed significantly. Compared to the same month last year, consumer prices rose by 5.4 percent in July and thus remained at the June level. Economists had expected a slight decline, but the deviation was apparently of little consequence in the market.

“The pressure on the US Federal Reserve to act has not increased, but it has not decreased either,” continued Altmann. The Fed will not be able to avoid communicating a schedule for the reduction of the monthly stimulus bond purchases either already in Jackson Hole or at least at one of its next meetings. Such a tightening of monetary policy can have a detrimental effect on the stock market because other asset classes then become more attractive again./ck/he

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