NEW YORK (dpa-AFX) – The US stock exchanges have stabilized after their recent losses on Thursday. Inflation data, which were received positively, initially gave a significant boost to prices before the momentum ebbed noticeably again. In the end, the most important indices each recorded moderate gains. In July, inflation did not rise quite as significantly as analysts had expected compared to the same month of the previous year.
The leading index Dow Jones Industrial closed 0.15 percent up at 35,176.15 points. The market-wide S&P 500 increased by 0.03 percent to 4468.83 points. The technology-heavy selection index Nasdaq 100 went up 0.18 percent to 15,128.84 points.
On trend, US inflation has been falling since June 2022. Economists assume that price pressure will continue to ease. “The inflationary pressure measured by the core rate should remain quite low in the coming months,” wrote the Commerzbank experts. “Rents, the main spending item, are now rising at a slower pace, and data on new lease rents suggest upward pressure should ease further going forward.”
Inflation data are currently the focus of particular attention because they are of great importance for the monetary policy of the central bank. After a pause, the Fed hiked interest rates again in July. How to proceed, however, remains open.
San Francisco regional Fed Chair Mary Daly said after the inflation data was released that the central bank had “more work to do.” She added that it has not yet been decided whether interest rates will be raised and how long they will be kept constant. According to these statements, investors’ willingness to take risks decreased significantly.
At the top of the Dow, Walt Disney shares rose 4.9 percent. After Netflix, the media and entertainment group also wants to put an end to the free sharing of passwords across households from 2024 on its video streaming service. At the same time, the ad-free version of the Disney+ streaming service is becoming more expensive. Meanwhile, theme parks and the cruise line continued to delight Disney in the past quarter. The group’s business figures were mostly positive, wrote analyst Markus Leistner from DZ Bank.
In the S&P 500, the shares of the carmaker Ford and General Motors stood out negatively with losses of 4.5 and 5.8 percent respectively. According to stock market traders, there is growing concern that union leaders’ demands could drive up labor costs at these companies.
A multi-billion takeover is looming in the luxury fashion segment: The fashion group Tapestry (brands: Coach, Kate Spade, Stuart Weitzman) wants to take over Capri Holdings (Michael Kors, Versace, Jimmy Choo) for $57 per share. Shares of Capri soared 55.7 percent to $53.90, while Tapestry, the bottom performer in the S&P 500, fell 16 percent.
The euro was last traded at $1.0980. The European Central Bank set the reference rate at 1.1019 (Wednesday: 1.0968) dollars. The dollar thus cost 0.9075 (0.9117) euros.
At the end of trading on Wall Street, interest rate concerns dominated the US bond market: the futures contract for ten-year government bonds (T-Note Future) fell by 0.65 percent to 110.67 points. In return, the yield on ten-year bonds rose to 4.11 percent./la/he
— By Lutz Alexander, dpa-AFX —
2023-08-10 20:33:37
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