Dow Jones with biggest weekly increase since 2020

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the essentials in brief

• The US stock exchanges continued their recent recovery on Friday.
• The Dow Jones index now closes with the biggest weekly gain since November 2020.

Turbulent times for the leading index Dow Jones Industrial: A week ago it had fallen to its lowest level in more than a year. Now he’s posting his biggest weekly percentage gain in 18 months.

Exciting months on the New York Stock Exchange

After the price slide, especially from the end of April to mid-May, bargain hunters grabbed it again. They used the supposedly cheap courses to get started, said stockbrokers.

In addition, investors had taken the US Federal Reserve’s most recent minutes as evidence of only a gradual tightening of monetary policy. Thus to combat high inflation. With a plus of 6.24 percent, the leading index Dow Jones Industrial made the largest percentage weekly gain since November 2020.

On Friday, the Dow started the extended weekend with a rise of 1.76 percent to 33,212.96 points. This is after falling to its lowest level in more than a year seven days ago. The US stock market will remain closed on Monday for the Memorial Day holiday.

The market-wide S&P 500 gained 2.47 percent on Friday to 4158.24 points. The tech-heavy Nasdaq 100 rose 3.30 percent to 12,681.42 points.

Consumer spending is rising – consumer sentiment is clouding over

The latest US economic data meanwhile did not provide a uniform picture. On the one hand, consumer spending increased significantly in April. In addition, investors who were plagued by inflation concerns were relieved to learn that price developments had weakened somewhat.

On the other hand, however, consumer sentiment in May deteriorated more than expected, according to the University of Michigan. “This recent decline is largely due to the continued negative view on current buying conditions for homes and durable goods.” This was commented on by Joanne Hsu, director of the survey.

Gap stocks rally in the stock market

Looking at the individual stocks, investors reacted with fright at the start of trading to a drastically lowered profit forecast by the clothing retailer Gap. The shares had initially collapsed by more than 14 percent. After that, however, they recovered quickly in the friendly environment and were finally up a good four percent.

Among the few losers in the Nasdaq 100, the papers of the software provider Workday fell by 5.6 percent at the end of the index. Analysts justified this with orders postponed by customers in view of the economically uncertain situation.

Dell shares are increasing significantly

Dell Technologies’ shares soared 12.9 percent. The tech company increased revenue by a sixth last quarter thanks to strong demand for PCs. The papers from Ulta Beauty posted an increase of 12.5 percent. This is after the cosmetics maker raised its annual sales and profit targets.

The euro remained on the rise and was last seen at $1.0728. The European Central Bank (ECB) set the reference rate at 1.0722 (Thursday: 1.0697) dollars. The dollar thus cost 0.9327 (0.9348) euros. The common currency was once again supported by the expected turnaround in interest rates in the euro zone.

In view of the high inflation, Bundesbank President Joachim Nagel expects the ECB to raise interest rates several times this year.

On the bond market, the futures contract for ten-year Treasuries (T-Note Future) fell by 0.04 percent to 120.55 points. The yield on ten-year government bonds was 2.74 percent.