Speculations about a default at the US hedge fund Archegos Capital only briefly depressed sentiment on the US stock exchanges on Monday. Shares of banks …
NEW YORK (dpa-AFX) – Speculations about a default at the US hedge fund Archegos Capital only briefly depressed sentiment on the US stock exchanges on Monday. Bank shares were mostly weaker even at close of trading, but overall, investors’ mood brightened noticeably. The Dow Jones Industrial (Dow Jones 30 Industrial) even reached a new record level towards close of trading, before the plus then crumbled off somewhat.
The recently adopted corona aid package of around two trillion US dollars and the considerable progress made in vaccination continue to have a supportive effect. As US President Joe Biden said, 90 percent of adults in the US should be eligible for the vaccination by April 19.
The leading index Dow ultimately rose by 0.30 percent to 33 171.37 points. About half an hour earlier, he reached a new record with 33,259 points. The market-wide S&P 500 was quite stable with minus 0.09 percent to 3971.09 points and the technology-heavy NASDAQ 100 also only fell by a minimal 0.10 percent to 12965.74 points.
According to the Bloomberg news agency, Archegos had to sell more than $ 20 billion worth of shares on Friday because of margin calls. The Wall Street Journal even reported sales of $ 30 billion. According to insiders, the default is also costly for some major banks. After bank stocks such as Credit Suisse in particular (Credit Suisse (CS)) in Europe had already declined significantly, major US banks have now followed suit.
JPMorgan (JPMorgan ChaseCo) fell 1.6 percent at the Dow end, while Citigroup in the S&P 100 fell 2.0 percent. Morgan Stanley, reportedly among the affected banks, lost 2.6 percent and Wells Fargo (Wells FargoCo) 3.3 percent.
Goldman Sachs (Goldman Sachs), on the other hand, held up comparatively well with minus 0.5 percent. The bank does not expect high charges because of the exit from the dealings with Archegos, as Bloomberg reported, citing a person familiar with the matter. The bank’s loans to the hedge fund are fully secured and Goldman has already exited most of the positions, it said.
ViacomCBS shares, which fell 27 percent on Friday because of the hedge fund problems, lost another 6.7 percent. Even a purchase confirmation from Goldman Sachs was of little help.
The papers of the aircraft manufacturer Boeing were top value in the Dow with plus 2.3 percent. After the re-registration of its unlucky 737 Max jet, the group received another major order. The US airline Southwest (Southwest Airlines) ordered 100 medium-haul jets of the 737 Max series and secured purchase options for 155 aircraft. In the Nasdaq 100, on the other hand, the papers of the Covid-19 vaccine supplier Moderna stood out without any news. They were at the bottom with minus 7.4 percent.
The euro, which was just under 1.18 US dollars in Asian trade and then gave way, went up and down in US trade. At the end of Wall Street, the common currency cost $ 1.1765. The European Central Bank (ECB) set the reference rate at 1.1784 (Friday: 1.1782) dollars. The dollar cost 0.8486 (0.8487) euros.
On the US bond market, the futures contract for ten-year Treasuries (T-Note-Future) fell 0.19 percent to 131.38 points. The yield on ten-year government bonds rose to 1.71 percent./ck/he
— By Claudia Müller, dpa-AFX —
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