NEW YORK (awp international) – In the wake of the US Federal Reserve Chairman Jerome Powell’s speech on Wall Street on Friday, there was again a little optimism. After its weakness the day before, the Dow Jones Industrial expanded its initially moderate gains and recently rose by 0.62 percent to 35 431.58 points. The New York benchmark index is heading for a weekly plus of 0.9 percent.
The other New York indices also increased, setting new records: the market-wide S&P 500 gained 0.65 percent to 4498.87 points and the technology-heavy Nasdaq 100 rose 0.67 percent to 15,380.85 points. In the Dow, however, just under 200 points were missing from a record that is now almost two weeks old.
Powell’s speech had been a central topic in the financial markets for days. The US Federal Reserve Chairman was again cautious about monetary policy headwinds. Although he emphasized ongoing progress on the labor market, he continued to describe the current high inflation as only temporary. In his statements, stockbrokers read the message that a repayment of the billion-dollar bond purchases is not yet imminent. In this respect, there were no negative surprises for equity investors.
Corporate news once again contained light and shade for investors. In particular, the shares of Workday, which rose by ten percent, were in high demand after the software company surprised positively in the second quarter. Brad Sills of Bank of America also said the outlook for the order situation was encouraging.
There were also gains for the shares of Gap, after six percent in early trading they crumbled to only 2.4 percent in the end. The fashion chain was able to recover somewhat from its recent price losses thanks to surprisingly good quarterly figures and increased annual targets.
On the downside, the shares in Peloton, in particular, fell by eight percent. The fitness equipment specialist, who was considered a lockdown winner during the pandemic, reported a halving of growth for the past quarter and also unsettled investors with an unspecified accounting problem.
In the computer hardware area, HP Inc and Dell saw numbers go down 3.5 percent and five percent, respectively. HP’s sales fell short of expectations due to the shortage of chips. The Dell figures were actually commented positively by analysts, but the market referred to profit-taking after the recent good run in the papers.
Doordash’s shares fell 1.4 percent after it became known that the US metropolis of New York is not easing regulation of the food delivery industry. For example, restaurants will be allowed to charge a maximum of 15 percent of the order value of a food delivery as a fee. The law has yet to be signed by New York City Mayor Bill de Blasio./tih/he
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