There is currently much discussion among investors about how sustainable the price increase is – and to what extent this is putting pressure on the US Federal Reserve in its extremely loose monetary policy. “Should the price jump turn out to be significantly higher than expected, this could hit the stock exchanges seriously,” said portfolio manager Thomas Altmann from QC Partners with a view to the US inflation data.
The S&P 500, which represents the broad market, fell 0.18 percent to 4219.55 meters. The technology-heavy selection index Nasdaq 100 closed 0.03 percent up at 13,814.94 points.
At the top of the Dow, the papers of Merck & Co sat with a plus of 2.3 percent. The US has secured commitments for its Covid-19 investigational drug molnupiravir in a billion-dollar deal with the pharmaceutical company. If emergency approval is granted, around 1.7 million units of the antiviral agent will be delivered – with an equivalent value of around 1.2 billion dollars.
UPS’s new 2023 targets did not go down well with investors. Until then, the logistics group wants to increase sales significantly. The share price still lost a good four percent. Stockbrokers justified this with a disappointed target for profitability on the home market and with a lack of statements about cost savings. In the wake of UPS, the paper of the counterparty Fedex also fell by a good three percent.
Gains made by investors in the shares of the health insurer Clover Health, they plummeted by almost 24 percent. The day before, they had jumped 85 percent. One reason for such sharp swings is seen as the fact that the rally is cornering other speculators who were betting on falling prices for stocks.
The shares of the TV satellite operator Dish Network lost more than seven percent. The bank JPMorgan advised to sell the shares and justified this with the challenges of building a wireless network and a low frequency spectrum of the company.
The euro lost initial gains and closed Wall Street at $ 1.2175. The European Central Bank had set the reference rate at 1.2195 (Tuesday: 1.2182) dollars. The dollar had thus cost 0.8200 (0.8209) euros. Treasury bond prices rose on the US bond market. The futures contract for ten-year Treasuries (T-Note-Future) rose by 0.29 percent to 132.76 points. The yield on ten-year bonds fell accordingly to 1.49 percent./bek/he
— By Benjamin Krieger, dpa-AFX —