NEW YORK (awp international) – After catching up the day before, the prices on the US stock market rose further on Tuesday. Investors focused more on the economic strength of the United States and a little less on the risks to stocks from rising interest rates.
The technology-heavy Nasdaq 100, which the day before, after slipping to its lowest level since mid-October, was back in positive territory at the close of trading, gained 1.23 percent to 15,806 points just under two hours before the market closed. The leading index Dow Jones Industrial advanced 0.26 percent to 36,164 points. The market-wide S&P 500 posted an increase of 0.63 percent to 4700 points.
In view of the good economic development in the USA and the high inflation rate, US Federal Reserve Chairman Jerome Powell signaled an increase in the key interest rate for the period from March onwards. The Federal Reserve (Fed) will complete its billion dollar bond purchases in March and then “raise the key interest rate during the year,” Powell said at a hearing in the US Senate on Tuesday. Later in the year, the Fed’s balance sheet should also be quickly reduced. Powell stressed that the job market was recovering very quickly.
“Even if the words prepare the ground for a first rate hike in the near future, investors should interpret the change in monetary policy that has been initiated as a sign of strength and confidence in future economic growth,” explained analyst Konstantin Oldenburger from broker CMC Markets.
According to order and delivery numbers for 2021, Boeing’s shares rose 3.1 percent at the top of the Dow. Thanks to a comeback of the crisis pilot 737 Max and a recovery in the aviation industry from the Corona crisis, the US aircraft manufacturer significantly improved its order book in the past year. With 535 net orders for 2021, Boeing was ahead of European rival Airbus for the first time since 2018. However, the Europeans defended their top position in terms of deliveries by a wide margin.
A sell recommendation by the bank UBS for the shares of IBM pushed the price of the IT group down by 2.7 percent to the bottom in the leading index Dow. The shares of the network equipment manufacturer Juniper Networks, meanwhile, increased by more than two percent after a fresh buy recommendation from Bank of America. According to the genetic research company’s outlook for 2022, Illumina shot up by more than 14 percent./ajx/he
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