The market-wide S&P 500 gained 1.49 percent on Friday to 4173.85 points. The technology-heavy Nasdaq 100 rose 2.17 percent to 13,393.12 points. Once again, members of the US Federal Reserve (Fed) reassured investors with statements that the price increases triggered by the economic upswing were only temporary. Some of the raw materials, which have recently risen sharply in price, have now gone downhill – that too has now eased fears of a tightened monetary policy to combat inflation.
The current economic data from the USA, meanwhile, did not provide investors with any incentive to rekindle the inflation debate. The upward trend in prices for goods imported into the USA remained high, but other economic news did not indicate an overheating of the economy: retail sales surprisingly stagnated in April and total industrial production recently did not rise as strongly as analysts expected. In addition, the consumer climate deteriorated unexpectedly in May.
Recently, market participants have repeatedly expressed concern that rising inflation in the wake of a booming economy could cause the Fed to abandon its very expansive pace to support the economy. However, the analysts at Credit Suisse can also gain something from rising inflation expectations: This is usually positive for cyclical industries that are particularly dependent on the economy. You mentioned above all the banking industry, valuable stocks and small caps.
The entertainment giant Walt Disney meanwhile continues to groan under the corona crisis, and the success in the streaming business also subsided significantly at the beginning of the year. Since the pandemic largely paralyzes the rest of Disney’s entertainment empire, the group is dependent on the streaming services. Investors reacted disappointed to the numbers, the shares were with a minus of a good two and a half percent the biggest loser in the Dow, where 25 of the 30 values were listed in the plus.
The newcomer to the stock exchange and online food supplier Doordash exceeded analysts’ expectations with sales from the first quarter and recorded sustained high demand for food deliveries – despite gradually reopening restaurants and increasing vaccinations in the population. The share certificates soared by a good 22 percent.
The online portal for accommodations, Airbnb, also impressed the analysts with bookings for the first quarter of the year. Because of the repayment of debts taken on during the pandemic, the loss expanded enormously, but the shares still gained four percent.
The euro barely moved in late US trading, trading at $ 1.2142. The European Central Bank (ECB) had set the reference rate at 1.2123 (Thursday: 1.2081) dollars. The dollar had thus cost 0.8249 (0.8278) euros. In the US government bond market, the futures contract for ten-year Treasuries (T-Note Future) rose 0.15 percent to 132.43 points. The yield on ten-year bonds fell to 1.634 percent./he/zb
(AWP)
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