Equities New York Outlook: Dow only slightly lower – rise in yields slows tech stocks | 03/30/21

NEW YORK (dpa-AFX) – After another record high the day before, the Dow Jones Industrial (Dow Jones 30 Industrial) is expected a little lower on Tuesday. The broker IG estimated the leading index an hour and a half before the stock market launch at 33,140 points, which is a decrease of 0.09 percent. US President Joe Biden’s stimulus packages and rapid progress with vaccinations remain drivers, especially for default values. Investors in the tech sector could, however, put a spanner in the works by rising yields on government bonds.

Investors had quickly ticked off the collapse of the Archegos hedge fund the day before. Market strategist Stephen Innes from broker Axi spoke of a storm in a glass of water. Bank stocks recovered slightly on Tuesday before the market. Consumer confidence is on the economic agenda for March and is forecast to have risen.

At over 1.75 percent, the yield on ten-year US government bonds climbed to its highest level since January 2020. The reasons are the economic recovery expected in the wake of the economic stimulus and the fear of inflation in the event of overheating. Technology companies focused on growth suffer from higher interest rates because they make their financing more expensive. For this reason, prices on the Nasdaq have been under pressure for some time. On Tuesday, the NASDAQ 100 is expected to be 0.7 percent lower, according to the broker IG percent.

Corona vaccine manufacturer Biontech (BioNTech (ADRs)) and its US partner Pfizer are aiming to expand production capacity to 2.5 billion doses by the end of this year. So far there has been talk of two billion cans. Biontech shares, which are mainly traded in New York, rose by around six percent before the IPO, Pfizer was listed slightly weaker. / Ajx / jha /

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