It rose by 0.88 percent to 42,452 points around two hours before the market closed. The market-wide S&P 500 expanded its record level and recently rose by 0.52 percent to 5,781 points. The technology-heavy one gained 0.54 percent to 20,216 points.
According to market observers, the rising prices are not only due to particularly high levels of optimism. It was said that some pessimists who had taken short positions did not want to be caught on the wrong foot. Anyone who had previously borrowed shares and then sold them without owning them because they expected prices to fall is now stocking up on shares again in order to limit losses. This can lead to increasing price increases.
Nervousness remains high, especially as inflation data for September is due out on Thursday. They have the potential to influence the further interest rate path of the US Federal Reserve. If they turn out to be higher than expected, the Fed could keep its feet still in November and not even turn the interest rate screw, suspects analyst Christian Henke from broker IG. This would further dampen hopes of interest rate cuts, which have already fallen following the job data.
Meanwhile, the minutes of the last Fed meeting brought little new. On top of that, it was written before the surprisingly strong labor market data on Friday, which is why the hope of a second interest rate cut of 0.5 percentage points in November has now been completely priced out on the market.
Among the individual stocks, Arcadium shares stood out with a price jump of around a third to $5.54. The mining company Rio Tinto (LON:), whose interest only became known on Monday, agreed on a takeover with the lithium producer. He will pay $5.85 per share in cash, which corresponds to a premium of almost 90 percent to the closing price on October 4th.
Boeing (NYSE:) shares remained in a downward trend at minus 2.9 percent and were at the bottom of the Dow. After an inconclusive round of negotiations, the aircraft manufacturer withdrew the offer to its striking workers. On Tuesday after the stock market closed, it was also announced that the rating agency S&P was examining a downgrade of the credit rating of Airbus (EPA:) competitor. On the last trading day, Boeing was not convincing with its delivery figures for the past quarter.
The A and C shares of Alphabet (NASDAQ:) each fell 2.4 percent. The US government is considering going to court to demand that Google’s parent company be broken up. She has until November 20th to decide on her recommendation in a competition process that has been ongoing for years. At the beginning of August, the search engine subsidiary suffered a severe defeat against US competition authorities. A judge in Washington ruled that the company had a monopoly in Internet searches – and defended it against competition using unfair means. Google wants to appeal the ruling.
