NEW YORK (dpa-AFX) – Ahead of important decisions in US politics, profits are looming on Wall Street. Investors are apparently betting that Congress will prevent an impending partial shutdown of government business at the last minute before the new fiscal year that starts on Friday.
The broker IG estimated the Dow Jones Industrial a good hour before the start of trading 0.3 percent higher to 34,500 points and the market-wide S&P 500 with plus 0.4 percent to 4375 points. Both had saved only part of the interim recovery across the finish line the day before.
Meanwhile, the indices of the technology exchange Nasdaq had extended their latest setback. Growth stocks in particular are suffering from the bond yields that have recently climbed to the highest level in months. But also in the selection index Nasdaq 100 a new stabilization attempt is emerging on Thursday – the broker IG sees it 0.5 percent higher at 14,820 points. This means an increase of almost 2 percent on a quarterly basis – despite the significant setback from the August record at 15,701 points.
In the Senate, an interim funding for the government is to be voted on by the beginning of December. A vote in the House of Representatives could follow shortly thereafter, in order to finally put the budget regulation into effect shortly before a crucial deadline at midnight. A vote on a large infrastructure package initiated by US President Joe Biden is also planned in the House of Representatives.
If the Senate and House of Representatives reached an agreement, the issue of shutdown could at least temporarily be removed from the list of risk factors for the stock market, said market strategist Jürgen Molnar from RoboMarkets. After that, the problem with the debt ceiling remains to be resolved. Without an increase or suspension of this limit, the US government faces default, according to Treasury Secretary Janet Yellen.
Among the individual values, the papers of Bed Bath and Beyond stood out with a pre-market price slide of around 16 percent. The retailer for everything to do with home ownership failed to meet market expectations with its business figures – the share is back at the level from the beginning of the year.
The papers from Merck & Co and Acceleron Pharma were up slightly. The US pharmaceutical company plans to take over the biopharmaceutical company for around 11.5 billion US dollars. / Ag / jha /
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