Dow Jones closes in the red: Tech stocks are recovering

Friday March 19, 2021

Dow Jones closes in the red
Tech values ​​are recovering

The US leading index Dow Jones extends its slight previous day losses. Another significant rise in yields on the bond market is depressing the mood of the Dow Jones. The technology-heavy Nasdaq, on the other hand, is back on the road to recovery after its three percent slide from the previous day.

The US stock exchanges closed inconsistently, burdened by price losses in financial stocks. The Dow Jones standard value index closed 0.7 percent lower to 32,627 points. The technology-heavy Nasdaq, on the other hand, went on a recovery course after its three percent slide on Thursday and gained 0.8 percent to 13,215 points. The broad S&P 500 lost 0.1 percent to 3913 points.

The shares of financial institutions such as Bank of America, Citigroup or JPMorgan lost up to 1.6 percent. The Fed is letting a relaxation of capital requirements for commercial banks introduced last year to combat the consequences of the pandemic expire at the end of the month. But there is also a good side, said Neil Wilson, chief analyst at the online broker Markets.com. It is a good sign that the Fed is confident enough to withdraw some of its aid to the banks.

Investors were also worried about the persistently high bond yields. The trend-setting ten-year US bonds returned 1.725 percent, just below their 14-month high on Thursday. He thinks the recent upward movement is excessive and expects a stabilization, said Thomas Hayes, manager at asset manager Great Hill. In the past few weeks, the rise in yields had fueled speculation about premature rate hikes and unsettled the stock markets. Meanwhile, the oil price went on a recovery course after the roughly seven percent drop from the previous day. The US variety WTI rose two percent to $ 61.20 per barrel (159 liters).

Nike disappoints with outlook – Investigations against Visa

On the stock market, Nike stocks fell almost four percent due to a disappointing outlook. The sporting goods manufacturer has its costs under control and is still one of the world's leading brands, said analyst Randal Konik of the Jefferies investment bank. At the same time, Visa shares slipped by more than six percent at times. As a result, the credit card provider lost around $ 25 billion in market value. According to insiders, the US Department of Justice is investigating possible antitrust violations of the group. Visa initially did not want to comment on the case.

FedEx stocks jumped more than six percent. Thanks to the boom in online orders, the parcel delivery company more than doubled its profit. The company will be able to enforce price increases at least this year, predicted analyst Helane Becker from the asset manager Cowen. Therefore, she believes the stocks will continue to make gains.