The situation is similar to the S&P 500 across the market, which just missed its record the previous day. It finally rose 0.47 percent to 5,842.47 points on Wednesday. The tech-heavy Nasdaq 100, which was particularly weak on Tuesday, rose just 0.07 percent to 20,174.05 points midweek. It was dampened by the mixed price development of semiconductor stocks after the recent losses.
In addition to the upcoming US elections, the focus is on the current corporate reporting season, wrote the experts at Index Radar. “Expectations have dropped significantly recently, which is certainly positive.” They see the business numbers as a litmus test of whether the recent price gains were justified. “We are a little optimistic overall, at least for the American reporting season. The US economic data in the third quarter was an almost entirely positive surprise, and the labor market in particular is thriving,” said Index Radar.
Investors continue to focus on monetary policy. If the Fed continues to cut interest rates before the end of the year, “the US economy should have a soft landing,” said Gerard Cassidy, head of US bank equity strategy at RBC Capital Markets. This would also support the investment banking industry, especially when it comes to IPOs and mergers and acquisitions.
An interest rate cut of 0.25 percentage points at the beginning of November is considered almost certain on the markets. A reduction of this magnitude is largely expected for the Fed meeting in mid-December, as the “Fed Watch Tool” from the CME options exchange shows.
Morgan Stanley, another US bank, published encouraging figures on Wednesday. Both earnings per share and revenue beat consensus estimates. The shares rewarded this with a price increase of 6.5 percent and the maximum. A US Bancorp business colleague surprised him with his profit. The shares continued to move up with a gain of 4.7 percent and reached the highest level since mid-2022.
United Airlines continues to grow. As a result of the airline’s impressive quarterly figures, the shares rose 12.4 percent and were therefore as expensive as they were in February 2020.
Abbott Laboratories shares rose 1.5 percent. The pharmaceutical company specified its earnings forecast for the last quarter as part of the presentation of the figures.
A new buy recommendation from Citigroup resulted in share price gains of 4.3 percent for network equipment provider Cisco. This means that the shares were on top of the Dow.
Shares of vaccine maker Novavax, however, fell more than 19 percent. US authorities halted the company’s experimental flu and Covid-19 vaccine because a study subject developed severe nerve disease.
The euro fell to $1.0859. It reached its lowest level since early August on the day before the European Central Bank (ECB) interest rate decision. The ECB had previously set the reference rate at 1.0897 (Tuesday: 1.0903) dollar so the dollar cost 0.9176 (0.9171) euro.
On the US bond market, the futures contract for ten-year US government bonds (T-Note Future) rose 0.10 percent to 112.55 points. Their yield fell to 4.01 percent./gl/he
ISIN US2605661048 US 6311011026 US78378X1072
AXC0280 2024-10-16/22:36
2024-10-16 20:36:00
#Börse #Express #ROUNDUPStock #York #Conclusion #recovery #stabilization
