ROUNDUP / New York Stocks End: New recovery attempt | 02.12.21

NEW YORK (dpa-AFX) – The US stock exchanges dared to attempt a new recovery on Thursday. The heavy losses of the past two trading days were followed by significant gains. The volatile trade continues.

The Dow Jones Industrial (Dow Jones 30 Industrial) ultimately rose by 1.82 percent to 34,639.79 points and at least more than made up for its previous day’s minus. On Wednesday, the US stock market barometer dropped to an eight-week low, seven percent off its record high in early November.

The market-wide S&P 500 advanced by 1.42 percent to 4577.10 points on Thursday. On the Nasdaq, after an up and down for the selection index 100 (NASDAQ 100), it finally rose 0.71 percent to 15,990.76 points.

In the middle of the week, the news about the first case of infection with the coronavirus variant Omikron in the USA ended an attempt at recovery on the ailing US stock exchanges. Investment strategist Jürgen Molnar from trading house Robomarkets is convinced that this was certainly not the real reason for the panic-like sales towards the end of the trading day. “Investors simply no longer trust the roast of seemingly endless rising prices,” he sums up instead. Mainly because monetary policy is likely to cease to be a support factor in the coming months.

An assessment of the economic consequences of Omikron remains difficult, however, because the data situation is not yet sufficient. But according to JPMorgan analyst Marko Kolanovic, initial reports suggest that the Omikron variant could be less lethal than its predecessor. That would coincide with findings from the development of viruses in the past, he wrote. An end to the pandemic could be in sight and high-risk investments such as stocks could benefit from it.

Among the individual values ​​on Wall Street, Boeing were among the favorites with a plus of 7.5 percent. The aircraft manufacturer made important progress with the intended re-registration of its crisis jet 737 Max in China. The local aviation authority CAAC issued a directive to airlines to regulate the final steps before restarting.

The shares of Apple fell against it by 0.6 percent. The company had informed suppliers about weakening demand for the iPhone13, reported the Bloomberg news agency the previous evening, citing people familiar with the matter.

For the papers of the automaker General Motors, which had raised its operating profit target for this year the day before, the S&P 100 went up 5.1 percent.

Nvidia (NVIDIA), however, hardly reacted with a share price gain of 2.2 percent to the fact that the US government wanted to prevent the billion-dollar takeover of the chip designer Arm. The planned takeover by the graphics card specialist could slow down innovations, the FTC trade authority justified its complaint. The technology from Arm, which currently belongs to the Japanese Softbank Group, can be found in practically all smartphones.

The focus was also on an IPO: the Singapore-based transport and food delivery company Grab, which was merged with the listed investment vehicle Altimeter Growth, a so-called Special Purpose Acquisition Company (SPAC), debuted on the Nasdaq. But after the first rate was still at $ 13.06 and it quickly went up to $ 13.29 – an increase of almost 21 percent, the paper finally sagged to $ 8.75.

The newly inflamed risk appetite among investors had a negative impact on the bond market, as government bonds gave way there. The futures contract for ten-year Treasuries (T-Note-Future) lost 0.19 percent to 130.67 points in late trading. The yield on ten-year government bonds rose to 1.45 percent.

On the foreign exchange market, the euro fell noticeably in the course of US trading and recently hovered around the $ 1.13 mark. At the close of the Wall Street market, the common currency was priced at $ 1.1299. The European Central Bank had set the reference rate at 1.1339 (Wednesday: 1.1314) dollars. The dollar thus cost 0.8819 (0.8838) euros./ck/mis

— By Claudia Müller, dpa-AFX —


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