NEW YORK (dpa-AFX) – After signs of relaxation between the USA and China, Wall Street has expanded its profits in the course of trading. Support was seen on Monday that the US government is considering abolishing some of the punitive tariffs on imports from China introduced under the Trump administration in view of the high inflation rate.
Investors see this as a possible de-escalation of the trade war between the two economic superpowers, commented the stockbroker Pierre Veyret from the trading house ActivTrades. The leading index Dow Jones Industrial expanded its profits in the course of trading to an increase of 1.7 percent and was quoted at 31,805 points. In the past week it had fallen by 2.9 percent. “Despite the fear of lockdown after record infection numbers in Beijing, the week starts with a willingness to take risks,” wrote the Landesbank BayernLB.
The market-wide S&P 500 climbed 1.27 percent to 3,951 points on Monday. After initial losses, the technology-heavy Nasdaq 100 turned positive which increased by 0.93 percent to 11,944 points.
As in the European trading venues, the banking sector was the winner of the day. Optimism made about the Dow member JPMorgan broad, whose papers rose by a good seven percent. In view of the rising key interest rates away from trading in stocks and bonds, the bank expects this year’s net interest income to be more than 56 billion US dollars – after 53 billion previously. The expert Jason Goldberg from the British investment bank Barclays commented that so far he had “only” expected 55 billion.
In the wake of JPMorgan, other financial stocks also posted significant gains. Citigroup and Bank of America
(Bofa) posted gains of more than six percent. Goldman Sachs gained 3.8 percent while stocks from American Express increased by 3.2 percent.
However, the recently severely depressed prices, especially in the technology sector, are obviously attracting potential takeovers again. The chip company Broadcom is considering buying VMware, according to insiders , a software provider for cloud computing and data center virtualization. The Bloomberg news agency reported on talks between the two parties. Speculation about it drove VMware shares up 20 percent, but those of Broadcom vice versa with almost four percent in the red.
The analysis house Bernstein Research rated the possible deal as positive for Broadcom. Company boss Hock Tan can already show successful acquisitions in the software sector, wrote the expert Stacy Rasgon.
After a disastrous week for retailers, bargain hunters are now taking action. Ross stores, which alienated their investors with a profit warning on Friday, rose by almost ten percent. And also the papers from Walmart recovered, up three percent./jcf/la/ngu
ISIN US2605661048 US6311011026 US78378X1072
AXC0297 2022-05-23/20:21
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