NEW YORK (awp international) – US stock markets are on the rise on Tuesday, and in some cases quite significantly. After a cautious start to the week, investors are showing more courage when it comes to American stocks. Shortly before consumer prices, which are particularly important for US monetary policy, are expected on Wednesday, price signals from the United States provided relief. Producer prices for July did not rise quite as significantly as expected.
The leading index Dow Jones Industrial was up 0.84 percent at 39,685.87 points two hours before the close. The broad market S&P 500 rose by 1.43 percent to 5,421.02 points. The technology sector saw the most significant gains: with an increase of 2.22 percent to 18,952.92 points, the Nasdaq 100 is heading for its fourth consecutive day of gains.
“Even though producer prices have only a limited impact on consumer prices, today’s report is well within the range that allows the Fed to continue to focus on the labor market in its upcoming policy decisions,” wrote JPMorgan economist Michael Hanson on Tuesday. In view of falling inflation and a weakening economy, financial markets are expecting a key interest rate cut in September.
Among the individual stocks, Starbucks shares made the biggest headlines. The suffering investors were euphoric about the resignation of the company’s CEO Laxman Narasimhan and the fact that the coffee house chain was able to lure a successor, Brian Niccol, from the fast-food chain Chipotle Mexican Grill. David Palmer from the analysis firm Evercore spoke of a “great success”. One man’s joy is another man’s sorrow: While Chipotle shares fell by eight percent, Starbucks shares jumped by more than a fifth.
From the Dow, Home Depot was in the spotlight with results and a lowered sales forecast. Investors reacted quite relaxed, however, because after an initially weaker start, the share price recently rose by 1.4 percent. JPMorgan expert Christopher Horvers believes that the forecast reduction serves to reduce risk – and expressed his expectation that this realization could attract stock buyers again.
In the technology sector, Nvidia continued its rally from the previous day. With an increase of more than five percent, it managed to get back above the 21-day line that is popular with chart technicians and describes the short-term trend. Shares of other industry giants such as Microsoft, Apple, Meta and Amazon were also among the Nasdaq winners, with increases of between 1.5 and 2.4 percent.
Dell shares, which investors have recently avoided, also rose after Barclays Bank gave up its previous negative vote. A large part of the hype surrounding artificial intelligence has escaped from the share price and the computer company’s shares have thus suffered less of a downward trend, said experts at the British investment bank. The share price rose by 4.5 percent after temporarily halving since the end of May.
Tencent Music investors had to accept heavy losses. The US-listed shares of the Chinese online music platform fell by 15 percent due to a disappointing number of paying users. Sales and operating profit in the second quarter were a positive surprise, but this was apparently not enough for investors./tih/he
