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Apply here… According to trading data from Goldman Sachs, investors had already taken advantage of the decline, especially in technology stocks, to buy at the beginning of the week. “A number of hedge funds see the selloff as a buying opportunity,” said Jonathan Caplis of research firm Pivotalpath. Most investors he spoke to see the current problems as short-term and down to sentiment, rather than a long-term problem with the fundamentals of listed companies or even the economy to whole. After heavy losses, US stock markets closed well above their daily highs on Monday.
The price move was fueled by fears of a US recession following weak economic data and the “carrying trade settlement drama,” as Stephen Innes, Managing Partner at SPI Asset Management, said. According to market experts, when the yen recently fell to its lowest level against the US dollar since 1986, many investors borrowed money in Japan’s low-rate countries to invest in countries of interest high such as the United States. Bank of Japan interest rate hikes and weak US economic data put a damper on this speculation. The carry trades caused losses that had to be covered, which greatly increased the sell-off in stocks.
This means that the hot tech rally that fueled the AI boom has cooled a bit. At least some industry heavyweights such as Nvidia and Microsoft made some ground with price gains of 3.8 and 1.1 percent respectively. The fact that software provider Palantir raised its annual profit target to present the figures and justify this with the demand for AI software caused its shares to jump 10.4 percent.
In contrast, for Apple shares it was not enough to contain the clear daily loss. The development was similar to the Alphabet.
After quarterly figures were presented, Uber increased by almost 11 percent and Caterpillar by 3 percent. The driving service provider surprised with its second quarter record, while the construction equipment manufacturer beat profit estimates due to higher prices.
Lucid shares rose 3 percent. Tesla’s business partner particularly reassured investors by announcing a capital injection of 1.5 billion US dollars by its majority shareholder, the Saudi sovereign wealth fund, for its first off-road urban vehicle. (SUV) to build. The figures for the last quarter were mixed. There has been a loss of more than a quarter since the beginning of the year.
At Walt Disney, shareholders were able to enjoy a 2.5 percent share price increase. The entertainment group is increasing the prices for its streaming subscriptions in the US by up to a quarter. Thanks to Disney, titles from the streaming provider Netflix increased by 1.8 percent.
Zoominfo disappointed earnings expectations, sending shares of the software and data company down more than 18 percent and hitting new lows.
The euro ended its recent recovery rally, which had been pushed to its highest level since the beginning of the year on Monday. In the New York’s last trade cost the common currency 1.0929 US dollars. The European Central Bank had set the reference rate at 1.0915 (Monday: 1.0966) dollar so the dollar cost 0.9161 (0.9119) euro.
US government bonds went on the defensive as investors were willing to take on new risks. The futures contract for ten-year government bonds (T-Note Future) fell 0.60 percent to 113.39 points. As a result, the yield rose to 3.90 percent.
The Vix volatility index, which is considered a barometer of fear, fell sharply to almost 28 points – on Monday it reached the highest level since 2020./gl/he
— By Gerold Löhle, dpa-AFX —
Source: dpa-AFX
2024-08-06 20:41:00
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