NEW YORK (dpa-AFX) – The US stock exchanges largely recovered on Friday from their previous day’s losses. Fed President Jerome Powell’s speech during the Fed conference in Jackson Hole (US state of Wyoming) weighed only temporarily. But it contained nothing really new. There were no signs of a possible interest rate pause in September. Instead, Powell reiterated the Fed’s willingness to raise interest rates further if necessary. At the same time, however, the US Federal Reserve wants to proceed cautiously. On top of that, he said that continued above-trend growth may require further tightening.
The Dow Jones Industrial ended trading up 0.73 percent to 34,346.90 points, which means a loss of half a percent on a weekly basis. The market-wide S&P 500 rose by 0.67 percent to 4405.71 points on Friday. The Nasdaq 100 gained 0.85 percent to 14,941.83 points. On a weekly basis, it increased by 1.7 percent.
The day before, investors, especially on the Nasdaq technology exchange, had ultimately used a record high for Nvidia shares to take profits after very strong quarterly figures from the AI darling and chip group. As a result, the paper closed almost unchanged and the chip industry in general came under pressure, which meant that an important pillar for the overall market was lost.
Nvidia was down 2.4 percent on Friday. After the price has tripled in the year to date alone, investors are more cautious. US equity strategist Mike Wilson from Bank Morgan Stanley sees this development as a temporary end to the positive stock market trend. According to him, the fact that Nvidia shares had not continued to rise despite a surprisingly strong business performance signals that the rally is exhausted. Whether Wilson is right will also largely depend on the monetary policy course of the central banks.
Among other stocks, Boeing rose 2.8 percent at the top of the Dow. As the Bloomberg news agency reports with reference to insiders, the aircraft manufacturer is preparing to resume Boeing 737 Max deliveries to China after four years. Analyst Ken Herbert from the Canadian bank RBC sees the rumored news as a driver for deliveries and expectations for the free cash flow. The news should underpin the aircraft manufacturer’s goals for 2025/2026 even more, he also wrote.
Another report from circles caused the price of the Blackberry paper to jump by 18.1 percent. According to Bloomberg, private equity firm Veritas Capital is interested in acquiring the entire company. The talks are still at an early stage.
In contrast, Rite-Aid shares fell 51 percent. According to the “Wall Street Journal”, which relies on informed persons, the pharmacy chain wants to file for Chapter 11 bankruptcy protection. The background is lawsuits in connection with the alleged sale of opioids. An agreement with the plaintiffs had not yet been reached, it said.
Marvell Technology and Workday eyed the numbers on the Nasdaq 100, with stocks moving in opposite directions. Marvell, at the bottom, fell 6.6 percent, while Workday, at the top, gained 5.4 percent. According to the Keybanc analysts, the business of the chip manufacturer Marvell remained weak in the areas of network and consumption. On the other hand, the software company Workday impressed with a surprisingly strong quarterly report and raised the annual target for subscription income.
The euro was trading at $1.0798 at the close on Wall Street. In early European trading, it had reached its lowest level since mid-June at $1.0766 after weak economic data. The European Central Bank set the reference rate at 1.0808 (Thursday: 1.0840) dollars. The dollar thus cost 0.9252 (0.9225) euros.
On the US bond market, the futures contract for ten-year government bonds (T-Note Future) recently fell by 0.09 percent to 109.50 points. The yield rose to 4.24 percent./ck/he
— By Claudia Müller, dpa-AFX —
2023-08-25 20:27:27
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