NEW YORK (awp international) – Wall Street is trying to recover on Thursday after the setback caused by interest rate fears. Two hours before the end of the day, the Dow Jones Industrial, which had already stabilized the day before, rose 0.61 percent to 33,801.19 points after the main index lost nearly three percent since the end of November . The market-wide S&P 500 rose 0.78% to 3964.71 points.
Nasdaq tech stocks also managed to rally, as the Nasdaq 100 rose 1.20% to 11,635.69 points. It had lost as much as 5.6 percent in recent days. According to market observer Andreas Lipkow, some quarterly data, such as those from telecommunications equipment supplier Ciena, have revived the recently sharply reduced interest of Nasdaq investors.
Investors are now eagerly awaiting the release of US producer prices on Friday. The point is to see how effective the US Federal Reserve’s recent tight monetary policy is in curbing inflation and whether it could be eased in the near future, he said. Stockbrokers also expect this to be a harbinger of US inflation data, which will dominate the agenda next week along with the Fed’s interest rate decision.
Boeing became the leader of the Dow with a 2.3% increase. They followed the route of earnings that competitor Airbus had already pocketed in Europe. There is something akin to a spirit of optimism in the industry: as DZ Bank analyst Holger Schmid wrote the day before, it could benefit from a much-needed modernization of the global airline fleet and a recovery in passenger numbers. He also assumes that easing corona rules in China could help improve supply chains.
In the technology sector, among others, Ciena lifted the mood: shares of the telecommunications equipment maker rose 20.5% on strong fiscal fourth-quarter results. The driving force behind this has been the alleviation of supply chain issues. Statements from the CEO on the outlook were also found encouraging. Shares Cisco and Juniper Networks followed with gains of up to 1.9%.
All eyes are also on China due to the imminent easing of strict anti-Covid measures. As a result, some US-traded Chinese tech stocks remained on the road to recovery. Shares of search engine Baidu, for example, rose 4.6%, to its highest level in two months. Shares of online retailer Alibaba even hit their highest level in nearly three months, surging 6.6%.
At Tesla, however, the fears for China do not end, with a discount of 0.9 percent the shares have failed to follow the recovery of the Nasdaq. In line with speculation on Monday, Bloomberg news agency reported, citing insiders, that the electric car maker was cutting production shifts at its Shanghai plant. This would increase signs that demand in China is not meeting expectations.
There was also positive interest in oil stocks. Even initially buoyed by temporarily higher oil prices, ExxonMobil shares defended a 1.2% gain with two hours to go after announcing an expansion of its share buyback program and a new plan five-year period with massive investments. Chevron shares followed the Dow up 0.8%.
