Equities New York Conclusion: Continued recovery – US economy on course | 01/11/22

After catching up the day before, prices on the US stock market continued to rise on Tuesday. According to US Federal Reserve Chair Jerome Powell, investors are focused on…

NEW YORK (dpa-AFX) – After catching up the day before, the prices on the US stock market continued to rise on Tuesday. According to US Federal Reserve Chairman Jerome Powell, investors focused on the economic strength of the United States and a little less on the risks for stocks from rising interest rates.

The tech-heavy NASDAQ 100, which was up again the day before after falling to its lowest level since mid-October, now gained 1.47 percent to 15,844.12 points. The leading index Dow Jones Industrial (Dow Jones 30 Industrial) advanced by 0.51 percent to 36,252.02 points. The market-wide S&P 500 posted an increase of 0.92 percent to 4713.07 points.

In view of the good economic development in the USA and the high inflation rate, Powell signaled an increase in the key interest rate for the period from March onwards. The Federal Reserve (Fed) will complete its billion dollar bond purchases in March and then “raise the key rate during the year,” Powell said at a hearing in the US Senate on Tuesday. Later in the year, the Fed’s balance sheet should also be quickly reduced. Powell emphasized that the labor market has largely recovered from the Corona crisis. At the same time, he left no doubt about using all instruments to reduce inflation.

Powell’s words prepared the ground for a first rate hike in the near future. Investors should interpret the change in monetary policy as a sign of strength and confidence in future economic growth, said analyst Konstantin Oldenburger from broker CMC Markets.

According to order and delivery numbers for 2021, Boeing’s shares rose 3.2 percent at the top of the Dow. Thanks to a comeback of the crisis pilot 737 Max and a recovery in the aviation industry from the Corona crisis, the US aircraft manufacturer significantly improved its order book in the past year. With 535 net orders for 2021, Boeing was ahead of European rival Airbus (Airbus SE (ex EADS)) for the first time since 2018. However, the Europeans defended their top position in terms of deliveries by a wide margin.

A sell recommendation by the bank UBS for the shares of IBM pushed the price of the IT group down 1.6 percent to the bottom in the leading index Dow. The shares of the network equipment manufacturer Juniper Networks rose 2.5 percent after a fresh buy recommendation from Bank of America. According to the genetic research company’s outlook, Illumina shot up by around 17 percent for 2022.

The papers of the chip manufacturer Intel expanded their clear previous day profits by 1.3 percent. Investors were delighted to hear that Micron Technology’s David Zinsner has become the new chief financial officer. Micron shares closed 0.3 percent higher. Bernstein Research analyst Stacy Rasgon called Zinsner “a credible, disciplined and competent manager” and said his move was positive for Intel.

The euro gained noticeably. A clear reason for this was not apparent. After the US market closed, the common currency was priced at $ 1.1368. The European Central Bank (ECB) had previously set the reference rate at 1.1336 (Monday: 1.1318) dollars, the dollar thus cost 0.8822 (0.8836) euros.

On the bond market, the futures contract for ten-year Treasuries (T-Note-Future) gained 0.21 percent to 128.41 points. The yield on ten-year government bonds came back a little and was last at 1.739 percent./ajx/he

— By Achim Jüngling, dpa-AFX —


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