NEW YORK (dpa-AFX) – On Wall Street, the decisive runoff elections for the US Senate in Georgia are likely to be the center of attention on Tuesday. The broker IG estimated the Dow Jones Industrial around 45 minutes before the start of trading 0.17 percent lower at 30 172 points. On Monday, important indices such as the Dow or the market-wide S&P 500 had already paid tribute to their good run after initial records and each closed more than 1 percent in the red.
The result of the votes will determine whether the Republicans can defend their majority in the Senate or whether the Democrats will also dominate the second chamber in addition to the House of Representatives. With control of the Senate, the future President Joe Biden could rule – provided the Democrats pull together on bills or appointments of government officials.
If the Democrats win the race for the Senate majority, investors expect higher fiscal incentives to stimulate the economy, but also higher taxes and more regulation. But if the Republicans manage to win at least one of the two seats, they can block any initiative by President-elect Joe Biden, starting with the nomination of his cabinet.
With a view to individual stocks, the focus is on analyst comments on technology stocks. Bank JPMorgan pointed out the high valuation of the shares of Cree. In pre-market US trading, the LED manufacturer’s shares lost 2.6 percent.
Bank Citigroup removed its sell recommendation for Micron Technology’s paper and recommended it to buy instead. Before the trading session, the semiconductor manufacturer’s shares went up by a good three percent. The bank Goldman Sachs went the opposite way with the solar company First Solar: Here they received their buy recommendation and now advised to sell. The shares lost around five percent before the market ./la/jha/
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