The Swiss bank UBS remains optimistic about US stocks, pointing to the Fed’s announcement of a cut in key interest rates on Friday and to overall healthy profit growth among companies as support. The signals from Fed President Jerome Powell of an impending interest rate turnaround had created a buying mood on the market before the weekend, even though the level and sequence of the interest rate hikes remained unclear.
Coca-Cola US1912161007 reached a record high on Monday and led the Dow with a gain of 1.5 percent. The drinks manufacturer’s shares, which are considered defensive, have once again proven to be an anchor of stability in difficult stock market phases in recent weeks. They survived the market turmoil at the beginning of August without the slightest damage.
The shares of the electric vehicle manufacturer Tesla US88160R1014 fell by 3.2 percent. Canada wants to impose a 100 percent tariff on electric cars from China. According to experts, Tesla could therefore be forced to replace the export of vehicles from Chinese factories with cars from more expensive US factories.
With quarterly figures, the chip and AI group Nvidia US67066G1040 is in particular focus this week on Wednesday after the stock market closes. After the strong price increase on Friday, the shares fell by 2.3 percent on Monday. With a view to the upcoming Nvidia figures, Bank of America warned that the risk of disappointment could be underestimated. Such a disappointment also represents a danger for the overall market. With a market capitalization of 3.1 trillion dollars, Nvidia is in a position to move the overall market more strongly than just the technology sector.
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Shares in the oil companies Exxonmobil US30231G1022, ConocoPhillips US20825C1045 and Chevron US1667641005 gained up to 2.1 percent on Monday. Oil prices had increased against the backdrop of the ongoing tense situation in the Middle East. In addition, the government in eastern Libya had ordered a halt to oil production and exports of the raw material.
A 28.5 percent drop in share price spoiled the start of the week for shareholders of PDD Holdings US7223041028. The parent company of the online marketplace Temu had warned of falling sales. Experts said it was becoming an ever greater challenge to maintain the pace of expansion compared to competitors such as Bytedance.
The euro EU0009652759 fell slightly. Market observers spoke of a slight countermovement after the common currency rose significantly on Friday following the interest rate signals from Fed President Powell and was quoted above 1.12 dollars for the first time since July 2023. On Monday, the euro was quoted at 1.1160 dollars after the US stock market closed. The European Central Bank (ECB) had previously set the reference rate at 1.1163 (Friday: 1.1121) dollars, meaning the dollar cost 0.8958 (0.8980) euros.
On the US bond market, the futures contract for ten-year government bonds (T-Note futures) fell by 0.12 percent to 113.56 points. In contrast, the yield rose to 3.82 percent./ajx/he
