Stocks New York: Get out of tech and into the Dow

NEW YORK (dpa-AFX) – The pattern of the past few days continued once more on the US stock market on Friday: Another sharp rise in yields on ten-year US government bonds put the technology-heavy Nasdaq 100 under significant pressure again. It lost 1.24 percent to 12,891.32 points just under two and a half hours before the market closed, after having recovered the day before.

The development of the bond market with rising yields has been causing problems for the highly valued technology stocks for some time. In contrast, investors see catch-up potential in standard stocks and stocks of the “old economy”.

The Dow Jones Industrial leading index climbed to a record high for the fifth trading day in a row on Friday. Most recently he won 0.65 percent to 32,695.31 points and is heading for a weekly plus of 3.8 percent. The market-wide S&P 500 fell on Friday by 0.15 percent to 3933.58 points and thus moved a little away from its record from the previous day. The US consumer confidence determined by the University of Michigan was better than expected for the month of March.

Equity strategist Marc Häfliger of Credit Suisse wrote on Friday that the rising returns due to improved growth prospects supported the rotation in equity segments that would have suffered during the pandemic and are now benefiting in particular from the recovery of the economies and the nearing end of the pandemic.

Tech stocks Microsoft, Apple, Intel or Salesforce posted losses of up to 1.7 percent at the back of the Dow, while Boeing’s papers were again ahead with a plus of 6.2 percent.

After the re-registration of its unlucky 737 Max, the aircraft manufacturer brought in another order. The investment company “777 Partners” signed a contract for 24 medium-haul jets in the standard version 737-Max-8. Boeing is a typical representative of the “old economy”, the shares are benefiting from the aviation industry’s hope that the corona crisis will end soon. This week alone, Boeing’s stake has gained a fifth so far.

According to the company, a vaccine candidate from the US manufacturer Novavax offers a high level of protection against the original corona virus and the highly contagious British variant. The effectiveness against “mild, moderate and severe illnesses caused by the original Covid-19 strain” is 96.4 percent, said Novavax. The shares gained five and a half percent./ajx/fba

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