NEW YORK (awp international) – After the price slide the day before, there are signs of stabilization on Wall Street in the middle of the week. Despite a weak outlook from Micron Technology, this also applies to the technology values that were particularly weak the day before.
In the selection index Nasdaq 100, which had dropped to its lowest level since mid-July, the broker IG showed a recovery of 0.7 percent to 14,870 points one hour before the start of trading. In Europe, the Stoxx Europe 600 Technology already showed a clear reaction to its two-month low. The day before, investors had experienced a “deja vu” of the pattern from the beginning of the year, explained the market analyst Konstantin Oldenburger from broker CMC Markets with a view to the pressure of rising bond yields, especially on growth stocks.
The Dow Jones Industrial and S&P 500 also see growth: IG sees the Dow 0.4 percent higher at 34,440 points, the market-wide S&P is expected to be 0.5 percent higher. Both had remained well above the previous week’s lows the day before.
According to Bankhaus Bethmann, investors can get used to larger fluctuations: “The combination of lower growth momentum and less support from the central banks should lead to higher market volatility,” said Reinhard Pfingsten, Chief Investment Officer responsible for the investment strategy. The probability of a major correction increases, but could then offer a new entry opportunity.
Papers from Micron Technology sagged against the trend by up to four percent before the market after the semiconductor company disappointed with its outlook on Tuesday after the market closed. The provisional end of the oil price rally took some wind out of the sails of the recently strong energy stocks.
Meanwhile, aviation stocks such as Boeing and Spirit Aerosystems were strong. The investment bank Bernstein recommended them along with Airbus in an industry study. According to the expert Douglas Harned, the turning point is finally around the corner for global travel. He raised his forecasts for the delivery of civil aircraft, the traffic and also the capacities./ag/jha/
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