NEW YORK (awp international) – The US stock exchanges found their way back to success on Tuesday. At the beginning of the week, investors’ willingness to take risks had dwindled, but now it has returned vigorously. This was reflected in parallel with the weak US dollar, which had recently served as a safe haven for investors. Investors also became bolder because of rumors about a restart of the Nord Stream 1 gas pipeline to Europe.
The leading index Dow Jones Industrial steadily increased its gains. He crossed the finish line 2.43 percent higher at 31,827.05 points and was thus close to the daily high. The market-wide S&P 500 increased by 2.76 percent to 3936.69 points. The technology-heavy Nasdaq 100 even rose by 3.13 percent to 12,249.42 points – and thus returned vigorously above the 12,000 mark.
Rather weak company figures only inhibited the willingness to buy individual stocks such as IBM, but they did not slow down the market as a whole. According to stockbrokers, a lot of negative things had already been priced in recently and braver investors would now be on the lookout for bargains. They also became more willing to take risks because speculation about a reactivation of the gas pipeline eased concerns about a global energy crisis.
With a price slide of 5.3 percent, IBM was the biggest of just two Dow losers. Experts drew a positive conclusion from the second quarter of the IT giant, but criticized a lowered cash flow target and the outlook for the third quarter. According to Bank of America analyst Wamsi Mohan, this fell well short of consensus expectations.
Johnson & Johnson became the second weak Dow stock, falling 1.5 percent. The consumer goods and pharmaceuticals group lowered its annual targets for the second time due to the strong US dollar. The quarterly figures, which were actually rated as robust, did not have a positive impact here either.
Boeing investors, on the other hand, posted strong gains, with the share rising 5.7 percent at the top of the Dow. The aircraft manufacturer is currently scoring points with aircraft orders at the air show in Farnborough, UK – with the conclusion that the Americans are ahead of their European competitor Airbus on the second day of the show.
There was a lot of demand for some stocks from the US auto sector: Ford and General Motors (GM) each rose by more than five percent, while shares in the electric car specialist Tesla rose by only two percent. It became known that GM wants to launch an electric version of the Chevrolet Blazer next year and thus compete with Tesla’s Model Y.
Novavax’s shares jumped 11.6 percent on the Nasdaq stock exchange. The Covid-19 vaccine, which recently received emergency use approval, has now received the backing of a US advisory panel. This is considered an important step in providing another tool against the virus in the USA at a time when the number of infections is increasing again.
The shares of the Match Group, which focuses on online dating sites, were also among the big Nasdaq winners with a plus of 8.2 percent. A number of analysts, including Bank of America’s Nat Schindler, were positive on the company’s prospects on Tuesday. He believes the stock will continue to show strength even in a downturn. The expert emphasized that he had the impression that growth was only just beginning.
The increasing willingness to take risks was evident on the financial markets across the board. Unlike last time, the euro rose, driven by speculation that the ECB could announce a stronger interest rate hike than previously priced in on Thursday. With the last payment of EUR 1.0225, the price clearly returned above the USD 1.02 mark. The European Central Bank (ECB) had set the reference rate at 1.0245 (Monday: 1.0131) dollars.
Investors also increasingly turned their backs on US bonds, which were seen as a retreat. The 10-year Treasury futures contract fell 0.42 percent to 117.97 points. In return, the yield on ten-year government bonds rose to 3.02 percent
— By Timo Hausdorf, dpa-AFX —
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