NEW YORK (awp international) – New inflation figures did not stop the recent recovery of the US stock markets on Wednesday. The leading index Dow Jones Industrial recently gained 0.13 percent to 36,298 points. The market-wide S&P 500 rose by 0.29 percent to 4727 points. The tech-heavy Nasdaq 100 — still at its lowest level since mid-October on Monday — continued its recovery rally, gaining 0.48 percent to 15,920.18 points. All three indices had nevertheless posted higher gains in early trading.
Consumer prices in the US rose by 7.0 percent compared to the same month last year. That’s the highest rate of inflation since 1982, but analysts were expecting it. Market observers now see interest rate hikes planned by the US Federal Reserve (Fed) as a reaction to high inflation and good economic development being incorporated into share prices.
The Fed will probably tighten the monetary policy reins only gradually and at a pace that the financial markets can cope with, wrote strategist Marko Kolanovic of the investment bank JPMorgan. In addition, the tightening of monetary policy is likely to be flanked by a strong cyclical recovery in the economy, according to the expert.
On the US bond market, the yield on ten-year US paper fell again towards 1.7 percent in the middle of the week. That also provided relaxation. But strategist Kolanovic sees no real burden on shares, even in rising capital market yields and interest rate expectations. Rather, they speak for shifts from growth stocks to valuable paper.
Among the individual values, the focus was on Biogen shares in the middle of the week with a price loss of 6.5 percent. The US public health insurance wants to severely limit the assumption of the immense costs for the Alzheimer’s drug Aduhelm from Biogen. The papers of the pharmaceutical company Eli Lilly, which, according to investors, is developing an even more promising Alzheimer’s drug, fell by 3.3 percent.
At minus 0.3 percent, Meta shares were relatively unimpressed by a negative court decision. The competition lawsuit, with which the US government wants to break up the Facebook operator, has been accepted by a court in Washington at the second attempt. Judge James Boasberg now saw the allegation of unfair competition as much better justified in the amended lawsuit and also rejected Facebook’s request to dismiss the lawsuit.
In the Dow, the titles of the cloud computing specialist Salesforce were ahead with plus 1.8 percent. At the back of the leading index were the shares of Goldman Sachs with minus 2.7 percent./ajx/he
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