NEW YORK (dpa-AFX) – Before the forthcoming statements from the US Federal Reserve (Fed) on further monetary policy, recovery was announced on the US stock exchanges on Wednesday. Pleasing figures from Microsoft and the chip company Texas Instruments encouraged investors, especially in the recently shaken technology sector. After two deep red stock market starts so far, investors went into the New York trading day with better courage for the first time this week.
While the Dow Jones Industrial rose 0.58 percent to 34,495.47 points at the end of the first hour of trading, the Nasdaq 100 rose particularly strongly by 1.75 percent to 14,396.77 points. The day before, the technology-heavy selection index had lagged behind the stabilized Dow. The S&P 500 index, which covers the broad market, recently gained 1.12 percent to 4405.12 points.
However, the rollercoaster ride with some losses made up for on the two previous days shows that it is not unusual these days for the picture to turn in the opposite direction over the course of the day. The Dow Jones Industrial had already gained significantly more in early Wednesday trading with around 1.5 percent at the top than last.
The current fluctuations are an expression of the high level of nervousness among investors ahead of the interest rate decision by the US central bank that is expected in the course of the year. It is now accepted that the Fed will set the course for higher interest rates. According to the trade, the decisions could set the direction for the stock market in the coming weeks. Many observers are expecting a clear signal that the central bank interest rate, which is currently at zero, will probably rise as early as March.
Even more important than the start date, however, are statements about the pace of further tightening of monetary policy. In addition, the Fed will soon have to clarify how it intends to reduce its balance sheet, which has been bloated by asset purchases. “This measure is likely to become a major issue, because it withdraws part of the liquidity that has so far seemed to be infinitely available from the market – albeit certainly only in homeopathic quantities,” said capital market strategist Jürgen Molnar from broker Robomarkets.
Microsoft shares dominated the Dow, rising 4.2 percent. Analysts praised the software giant’s figures, which after days of falling prices in the technology sector again set a more positive scent for this industry. Analyst Kirk Materne from the analysis company Evercore ISI emphasized an optimistic group forecast for the cloud platform Azure in the current business quarter.
So did Nasdaq representative Texas Instruments, whose shares rose 4.1 percent. The chip group had also presented strong quarterly figures and surprised the group of experts with an optimistic view of the future. The focus is now on Tesla with the after-hours results on Wednesday. In the run-up to the figures, the price of the electric car manufacturer recovered by 3.3 percent.
Boeing, however, did not join this positive series, the papers of the aircraft manufacturer turned three percent into the red after an initially moderate start. The corona crisis and problems with the long-haul jet 787 “Dreamliner” caused the aircraft manufacturer to lose another billion in 2021. They could not keep up with the growing market as a whole.
The same was true for the telecom giant AT&T and its quarterly figures. A significantly greater interest in its streaming services helped the telecom group to achieve its annual goals, but that was not enough for investors – the price was recently down 2.3 percent. There were critical voices about the outlook, which was weak.
Meanwhile, the toy manufacturer Mattel made a positive impression with a price jump of ten percent. He has regained a coveted license to produce Disney toys, including characters based on the Frozen films. The rights were lost to rival Hasbro in 2016, which is now back on the rocks. Its papers were under pressure at 0.9 percent.
There were also joys and sorrows with some other secondary stocks: The papers of the hygiene products manufacturer Kimberly-Clark, for example, lost 5.3 percent due to a disappointing outlook for 2022. Those of the display glass specialist Corning, on the other hand, shot up by 13 percent after strong quarterly figures and a good outlook./tih/he