NEW YORK (dpa-AFX) – Economic optimism and the temporary relaxation on the US bond market spurred the US stock exchanges on Tuesday. The vaccine advances also supported events on the markets, according to the trade. Contrary to the development on the previous day, both the standard and the tech values went up this time.
The leading index Dow Jones Industrial reached the next record with 32,150 points and recently increased by 0.79 percent to 32,055.16 points. The market-wide S&P 500 gained 1.99 percent to 3897.26 points, and is still a little more than 50 points short of its record.
The technology-heavy Nasdaq 100, which had slipped sharply the day before, recovered noticeably with a plus of 4.28 percent to 12,825.16 points. Tesla stopped their decline with a price jump of 18 percent. Apple were also on the recovery path with plus four and a half percent.
The tech sector had been hit particularly hard by the rising yields on the bond market since mid-February. The high-growth tech stocks in particular suffer as a result, because higher returns make the financing of companies more expensive and the papers lose their attractiveness as a result. In the case of standard stocks and cyclicals as well as stocks of the “old economy”, investors see catch-up potential in the course of the corona easing and the associated economic recovery, which is why they had recently shifted out of the tech stocks.
Wall Street is currently a one-way street up, no matter in which direction the bond market goes, wrote analyst Edward Moya of broker Oanda. The movement in the tech sector coincides with developments in the US bond market. There the prices rose significantly on Tuesday, the yield on ten-year papers fell. The recent weakness in tech stocks is now offering investors an overdue opportunity to buy, Moya said.
The shares of Biontech gained almost eight percent, those of the cooperation partner Pfizer only 0.8 percent. The Covid-19 vaccine developed jointly by the two companies showed a high ability to neutralize mutant virus strains that were first discovered in Brazil, Great Britain and South Africa.
The meat substitute manufacturer Beyond Meat is expanding its collaboration with the supermarkets of the Walmart retail group. The papers reacted with a plus of 3.4 percent.
The shares of the online fashion retailer Stitch Fix collapsed by 29 percent after business figures for the past quarter. The pessimistic outlook is putting Stitch shares under pressure, wrote CMC Markets UK analyst David Madden.
Gamestop shares continued their latest rally, up 23 percent to their highest level since early February. The day before, the last speculators-driven titles of the ailing video game retailer had jumped by more than 41 percent./ajx/mis
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