NEW YORK (dpa-AFX) – After the holiday on Monday, the US stock market started the shortened week well recovered. The Dow Jones Industrial (Dow Jones 30 Industrial) regained the round mark of 30,000 points in early trading on Tuesday and was last listed 1.92 percent higher at 30,462 points. The market-wide S&P 500 gained 2.4 percent to 3763 points. The technology stock-heavy NASDAQ 100 rose by 2.7 percent to 11,564 points.
Concerns about the economy due to high inflation and the resulting need for a quick turnaround in interest rates pushed the leading US index down almost 5 percent last week to its lowest level since the end of 2020. The week before, the loss had been almost as high. For many market participants, however, the recent sell-off seems to have gone too far, as evidenced by the rises on some Asian and European stock exchanges. The mood is supported by statements by President Joe Biden that a recession in the USA is not “inevitable”.
Stockbrokers warn, however, that this could only be an interim recovery in a longer downtrend on the stock exchanges.
Fresh data from the important US real estate market had little impact on the indices. Existing home sales fell 3.4 percent in May. It was the fourth straight decline. However, analysts had expected a slightly stronger decline. The real estate market is under pressure because, on the one hand, rising interest rates are making it more expensive to finance apartments and houses, and on the other hand, sales prices are threatening to collapse if demand falls.
From an industry perspective, energy stocks were at the top of investor favourites. They benefited from significantly higher oil prices. Accordingly, Chevron’s shares were well ahead of the Dow with a plus of 4.2 percent. ExxonMobil stocks rose 6.4 percent.
Of the electric carManufacturer Tesla will cut 3 to 3.5 percent of its jobs in the coming months. That put the head of the company Elon Musk clear on Tuesday after conflicting reports. The tech billionaire reiterated that he expects a recession in the US in the near future. Tesla shares soared 11.5 percent.
Food maker Kellogg has come under the spotlight with news of a split into three public companies. In the future, the core will be the international snack and cereal business with well-known brands such as Kellogg’s, Frosties or Pringles form. The announcement drove the papers up 2.7 percent.
In the struggle for a takeover of the airline Spirit (Spirit Airlines) by Jetblue (JetBlue Airways), there seems to be no end in sight. Jetblue has now improved the offer again to outperform Frontier Airlines. Spirit’s shares gained 8.2 percent while Jetblue’s shares fell 1.4 percent.
Davita (DaVita HealthCare Partners) shares fell more than 15 percent. The dialysis provider has suffered a defeat before the US Supreme Court in a dispute over the amount of reimbursements for certain dialysis patients. A majority of the nine judges of the US Supreme Court sided with a hospital in Ohio in the dispute over the design of company health insurance and thus opposed Davita./edh/mis
–
