New York Stocks End: Sell-off slowed thanks to tech stocks recovery

The fear of a new corona wave had initially weighed heavily on New York stock trading. At 26,715 points, the Dow Jones Industrial fell to its lowest level since the beginning of August. The leading index went from the day with a discount of 1.84 percent to 27 147.70 points. The market-wide S&P 500 lost 1.16 percent to 3281.06 points.

Airlines shares were very weak in view of the new corona worries and fears of a possible renewed restriction of travel activities. United Airlines and American Airlines each lost around eight percent.

Bank stocks also fell. JPMorgan lost more than three percent, Citigroup more than two percent. Market participants pointed to a leak in confidential money laundering reports from the US Treasury Department about dubious payment flows, the so-called “FinCEN files”. As a result, the banking sector in Europe was already under great pressure.

Nikola shares plummeted more than 17 percent. The hybrid truck developer is coming under increasing pressure after allegations of misleading investors. The company’s boss and founder, Trevor Milton, has now announced his resignation. According to media reports, not only the US Securities and Exchange Commission, but also the Department of Justice, are investigating alleged misrepresentations. The background to this is an attack by the short seller Hindenburg Research.

Oracle and Walmart gained 1.79 and 1.32 percent, respectively. Both the software company and the retailer benefited from an agreement in the dispute over the future of the popular Tiktok video app in the USA. President Donald Trump had approved a deal between the Chinese Tiktok owner Bytedance and the two US corporations. Oracle is to take over a share of 12.5 percent in the company before an IPO of Tiktok Global, Walmart 7.5 percent.

The Illumina papers fell 8.59 percent after the news that the DNA sequencing provider plans to acquire Grail, a US cancer diagnostics company. The company originally founded by Illumina in 2016 had been spun off, but Illumina last held 14.5 percent of the shares.

After the US market closed, the euro was quoted at 1.1766 US dollars. The European Central Bank (ECB) had set the reference rate at 1.1787 (Friday: 1.1833) dollars, the dollar thus cost 0.8484 (0.8451) euros./ajx/fba

— By Achim Jüngling, dpa-AFX —

(AWP)

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