NEW YORK The leading index Dow Jones Industrial shook off initial losses and recently rose by 0.21 percent to 31,940.38 points. The other indices presented themselves even stronger: The market-wide S&P 500 rose by 0.70 percent to 3919.10 points and the technology-heavy Nasdaq 100 by 1.31 percent to 12,411.57 points.
Shortly before the start of trading in New York, the ECB had raised its key interest rate by 0.5 percentage points, as expected – despite the recent market turbulence, which had triggered negative headlines from the banking sector. After the collapse of several small US institutes, the situation in the United States had calmed down somewhat. In addition, the Swiss central bank is helping the ailing major bank Credit Suisse with a credit line worth billions, which has also eased the situation in the European financial sector.
The US banks showed a similar mixed picture on Thursday as last. First Republic Bank shares are back to record lows with another 27 percent fall. The stocks of some other regional banks, which had been at the root of the malaise with the largest US bank collapse since the financial crisis of 2008, also fell, albeit less significantly. On the other hand, the big players in the industry, such as the Dow members JPMorgan and Goldman Sachs as well as Bank of America, Citigroup, Morgan Stanley and Wells Fargo, fared much better – they mainly posted price gains.
Away from the financial sector, shareholders in Snap and Meta enjoyed premiums of 5.8 and 1.6 percent. Shares in the company behind popular photo app Snapchat and Facebook parent benefited from media reports that the US government is once again seeking a change of ownership for popular video app Tiktok. The “Wall Street Journal” and the website “The Information” wrote, among other things, that they demand that Chinese shareholders get out. Concerns about national security were given as the reason. After the EU Commission, the British government also banned the app on company cell phones on Thursday.
Adobe’s titles rose almost 4.5 percent after the software company released annual figures and gave an optimistic sales outlook, according to JPMorgan.
