After another record high the day before, the Dow Jones Industrial no new attack started on Tuesday. Investors were again skeptical of the bond market, with yields on US bonds rising further. With that in mind, they became less brave with stocks. The leading index fell by 0.30 percent to 33,071.84 points two hours before the end. He couldn’t get any closer to the record of 33,259 points reached at the beginning of the week.
Financials rebounded Tuesday from the turmoil that sparked speculation the previous day about troubles at the Archegos hedge fund. However, this was offset by generally weak technology stocks. The Nasdaq 100, which is shaped by this sector then fell a little more, by 0.65 percent to 12,881.72 points. The market-wide S&P 500 fell by 0.38 percent to 3955.98 meters.
At up to 1.77 percent, ten-year bonds on Tuesday yielded the highest yield since January 2020. The reasons given for the rise in interest rates are an economic recovery supported by economic stimulus and the fear of rising inflation. Technology companies focused on growth are seen as particularly suffering from this because it makes financing conditions more expensive for them.
With that in mind, some tech stocks included in the Dow rallied among the bigger losers in the benchmark index. Microsoft’s shares , Intel and Apple
lost between 1.2 and 1.4 percent. Those of the biotech company Amgen were last at the bottom with minus 1.5 percent. The advances in the US vaccination campaign are considered an important element of economic optimism. According to President Joe Biden’s announcement, 90 percent of adults will be eligible for the vaccination in three weeks. It goes with the fact that the vaccine pioneers Biontech and Pfizer announced an expansion of their production capacity on Monday. The two partners now want to produce 2.5 billion cans by the end of this year.
The plans became a support for Biontech in a generally weak environment in the pharmaceutical industry. The depository receipts of the German company traded in New York rose by ten percent and thus stood out positively from their sector. For the papers of the competitor Moderna conversely, it was down 4.4 percent and Pfizer shares could not benefit from the news, as they recently fell 1.4 percent.
Recovered financial stocks were not enough to support the market as a whole: Goldman Sachs shares and JPMorgan
led the Dow with gains of 1.5 and 0.9 percent. At the market it was said that the Archegos speculations had largely been ticked off the day before. Market strategist Stephen Innes from broker Axi spoke of a storm in a glass of water. According to experts, the recovery in the banking industry was also helped by rising US bond yields.
The rebound also spanned a number of other levels where Archegos was recently reported to have been rapidly shedding positions. These included, for example, the shares of the media group ViacomCBS
and Discovery whose prices had more than halved within a few days. Now they rebounded 1.8 percent in the case of Viacom and four percent in the case of Discovery./tih/he
ISIN US2605661048 US6311011026
AXC0415 2021-03-30/20:08
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