The Dow Jones Industrial Average rose in early trading Friday to its highest level since its peak in mid-July, closing up 1.14 percent at 41,175.08 points. This resulted in a weekly gain of about 1.3 percent for the main US index. The market-wide S&P 500 rose 1.15 percent to 5,634.61 points on Friday. The tech-heavy Nasdaq 100 rose 1.18 percent to 19,720.87 points.
“The sparrows have been whistling from the rooftops at least since the disappointing labor market report for July: The US Federal Reserve will start the main interest rate hike on September 18,” said the expert Elmar Völker from Landesbank Baden-Württemberg on the statements. “Whether Fed Chairman Powell tends to use a measured approach, which means a rate cut of 0.25 percentage points, or with a more precise discount of 0.50 percentage points still an open question at this time,” said Völker.
Among individual stocks, Workday shares came into focus. According to the Canadian bank RBC, the human resources software manufacturer performed cautiously in the last quarter, but he liked his goals for 2027. The shares rose more than twelve percent.
The ride-hailing company Uber is entering into a multi-year partnership with the car company General Motors (GM). According to this, Uber customers should be able to be guided by self-driving taxis from the subsidiary GM Cruise from 2025. GM shares rose 4.5 percent, Uber shares gained 1.4 percent.
Intuit shares responded with a 6.8 percent discount to the software company’s unexpectedly weak quarterly results. The double-digit percentage increase in sales didn’t help either.
Roku shares gained nearly twelve percent after Guggenheim Securities gave it a buy recommendation.
After Powell’s speech, the price of the euro rose above the $1.12 mark for the first time in 13 months. The common currency was recently quoted below again at $1.1191. Before the speech, the European Central Bank had set the reference rate at 1.1121 (Thursday: 1.1135) dollars, meaning that the dollar cost 0.8980 (0.8991) euros.
US government bonds rose. The futures contract for ten-year government bonds (T-Note Future) gained 0.39 percent to 113.73 points. In turn, the yield fell to 3.80 percent./edh/he
2024-08-23 20:34:00
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