Financials rebounded Tuesday from the turmoil that sparked speculation the previous day about troubles at the Archegos hedge fund. However, this was offset by generally weak technology stocks. The Nasdaq 100, which is shaped by this sector, fell more sharply by 0.96 percent to 12,841.35 points. The market-wide S&P 500 fell 0.32 percent to 3958.52 meters.
Stock marketers again pointed to rising US Treasury yields, which put a stop to the rally in equities. At up to 1.77 percent, ten-year bonds on Tuesday yielded the highest yield since January 2020. Technology companies focused on growth are seen as particularly suffering from this because it makes financing conditions more expensive for them. The reasons are the economic recovery expected thanks to economic stimulus and the fear of rising inflation.
The progress made in the US vaccination campaign is also seen as an important driver of economic optimism. According to President Joe Biden’s announcement, 90 percent of adults will be eligible for the vaccination in three weeks. It fits in with the fact that vaccine pioneers Biontech and Pfizer announced an expansion of their production capacity on Monday.
In the technology sector, the companies in the Dow rallied among the biggest losers. The shares of Microsoft, Salesforce, Intel and Apple lost between 1.2 and 1.8 percent. In the broad market, those of the electric car manufacturer Tesla continued their most recent downward trend with a discount of 1.3 percent.
The Archegos speculations had already largely ticked off the investors the day before. Market strategist Stephen Innes from broker Axi spoke of a storm in a glass of water, and so banks recovered from their previous weakness. Goldman Sachs stocks, 1.9 percent higher, led the Dow and JPMorgan was among the broader favorites, up 1.7 percent.
The targeted expansion of vaccine production by the partners Biontech and Pfizer to 2.5 billion doses by the end of this year was a support especially for Biontech. The depository receipts of the German company traded in New York rose by 5.2 percent and thus stood out positively, as the papers of the competitor Moderna slipped by four percent. Pfizer shares did not benefit from the news either: In a generally rather weak environment in the healthcare industry, they lost one percent./tih/he
(AWP)
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