NEW YORK (awp international) – After a mixed start to the week, the US stock exchanges rose again on Tuesday. The significant drop in oil prices was said to be supportive. The worries of stockbrokers that they could continue to drive inflation and put even more pressure on the US Federal Reserve to take action would be alleviated somewhat. The monetary authorities are expecting the first rate hike since 2018 on Wednesday.
The Dow Jones Industrial was up 1.35 percent at 33,391.47 points with two hours to go. The other New York stock barometers followed suit: The market-wide S&P 500 rose by 1.52 percent to 4236.61 points, while the technology-heavy Nasdaq 100 even gained 2.23 percent to 13,337.13 points. He had given way the day before.
However, stockbrokers continue to assess investors’ willingness to take risks as subdued, especially since there is still no sign of a ceasefire in the war in Ukraine. However, the statement by Russian President Vladimir Putin that Ukraine is not seriously looking for a mutually acceptable solution in the ongoing negotiations could not harm the price gains. The same applied to a wave of Covid-19 infections in China with feared consequences for international supply chains.
US economic data on Tuesday confirmed the currently high inflationary pressure: In February, producer prices increased by ten percent compared to the same month last year, as expected. However, it was said that a surprisingly gloomy mood in the industrial companies in the US state of New York had somewhat alleviated fears that the Fed would tighten its interest rate hikes.
But the price of oil was the linchpin of events on the New York stock exchanges. The two well-known types of oil, Brent and WTI, each cost less than 100 US dollars. This correction drove investors out of oil stocks, which had benefited from the sharp rise in prices in recent weeks. The courses of the oil multinationals Chevron and ExxonMobil fell by up to 4.8 percent.
On the other hand, airlines have been big beneficiaries of the recent oil price development. Because high oil prices are a serious cost driver for their aircraft, investors grabbed it again with relief. The stocks of the major US airlines American, United and Delta each rose by around seven percent. They also benefited from first-quarter revenue targets from Delta and United.
In the Dow, consumer stocks were an anchor of stability: the stocks of the consumer goods group Procter & Gamble, the fast food chain McDonald’s and the media group Walt Disney are at the top of the index with price gains of more than three percent.
On the Nasdaq, chip values recovered, among other things, with an increase of 6.7 percent at Nvidia. The price gains at the fitness specialist Peloton were even greater there, with a price jump of 8.8 percent. The US analysis house Bernstein sees this in an initial assessment optimistic. According to analyst Aneesha Sherman, the time has come for the stocks that have fallen out of favor with investors.
In the small caps area, the shares of Coupa Software were otherwise negative with a price slump of almost 21 percent. The company, which specializes in solutions for purchasing and procurement controlling, had presented satisfactory quarterly figures, but the outlook was a big disappointment./tih/nas
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