After two weak stock market days in the USA, the signs were pointing to recovery on Wednesday. After a sluggish start to trading, prices picked up momentum. That was before…
NEW YORK (dpa-AFX) – After two weak stock market days in the USA, the signs were pointing to recovery on Wednesday. After a sluggish start to trading, prices picked up momentum. This was especially true for technology stocks. Tailwind came from the bond market, where yields did not rise further despite another surprisingly high price data, but fell for the second day in a row. The leading index Dow Jones Industrial (Dow Jones 30 Industrial) rose by 1.01 percent to 34,564.59 points.
The broader S&P 500 gained 1.12 percent to 4446.59 points. The technology-heavy NASDAQ 100 rose more sharply by 1.99 percent to 14,217.29 points.
In the US, producer prices rose even more than expected in March. They experienced the strongest increase since the survey began in 2010. High inflation had noticeably slowed the upward trend in US stocks in the past few weeks. The day before, however, consumer prices had awakened initial hopes that inflation might have peaked.
The biggest loser in the Dow was JPMorgan (JPMorgan ChaseCo) down 3.2 percent. The money house had opened the number of large investment banks. Results also fell short of expectations because of the fallout from Russia’s war of aggression against Ukraine. Loan defaults were higher than expected, and analysts had also expected better results in investment banking.
On the other hand, the quarterly figures and statements from Delta Air Lines were very well received, they drove the entire industry. After a first quarter with deep red numbers, the company sees itself on the upswing again. “We returned to profitability in March,” said CEO Ed Bastian. The papers rose by 6.2 percent. United Airlines grew 5.6 percent and American Airlines grew 10.6 percent.
In fact, shares of Sierra Oncology are up nearly 40 percent. The British pharmaceutical company GlaxoSmithKline wants to take over the cancer researcher for 1.9 billion dollars.
The price of the pharmacy chain Walgreens (Walgreens Boots Alliance) Boots Alliance, which is included in the Dow, rose briefly by up to 6.5 percent, but then fell back to plus 0.8 percent. According to the Bloomberg news agency, Indian billionaire Mukesh Ambani is considering a takeover bid for the Americans’ international business through his company Reliance Industries.
The euro appreciated, closing at $1.0885 on Wall Street. The European Central Bank had previously set the reference rate at 1.0826 (Tuesday: 1.0861) dollars. The dollar had thus cost 0.9237 (0.9207) euros.
On the US bond market, government bonds continued the recovery from the previous day. The futures contract for trend-setting ten-year Treasuries (T-Note future) rose 0.13 percent to 120.66 points. In return, the yield on ten-year government bonds fell to 2.70 percent./bek/he
— By Benjamin Krieger, dpa-AFX —
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