At the end of the week, the US indices only recovered slightly from the lows to which they had been pushed by renewed profit-taking, especially in the technology sector. In tech, investors remain nervous ahead of the holiday weekend.
The sell-off in US tech stocks has continued for the second day in a row. The New York stock exchanges closed with losses. Of the Dow Jones went 0.6 percent lower to 28,133 points from the trade. The technology-heavy one Nasdaq gave 1.3 percent to 11,313 points gradually the broader one S&P 500 lost 0.8 percent to 3426.96 points a. Over the course of the week, the Dow dropped 1.8 percent, the Nasdaq 3.3 percent and the S&P 2.3 percent.
Europe too fell under the wheels in the wake of this. The leading German index Dax slipped by around 1.7 percent to a two-week low 12,842 points, its European counterpart EuroStoxx50 also gave way. A continued recovery in the US labor market initially provided some relief for investors.
In the US, non-farm employment rose 1.37 million in August, about as much as expected. The unemployment rate determined in a separate survey fell surprisingly significantly to 8.4 from 10.2 percent. "The data shows an improving labor market that supports consumption, but is still far from pre-coronavirus levels," summarized market strategist Sameer Samana of the Wells Fargo Investment Institute.
However, the focus of equity investors was the second Nasdaq price slump in a row. Jochen Stanzl, chief market analyst at CMC Markets, spoke of a "reality check for carefree US tech investors." After the record hunt of the past few weeks, it is clear to the market participants that it is not about price increases for an end in itself, "but here are companies that have to survive and invest."
The sector had grown by around 80 percent since March. Market heavyweights Microsoft, Amazon and Facebook yielded up to 2.8 percent. The business prospects for the industry giants are still good and a price setback to a certain extent is not surprising, said Eric Papesh of the investment house T. Rowe Price. "We believe they are backed by solid fundamentals – including improvements in cash flow, revenue, earnings and margins."
On the other hand, given the recent rise in bond yields, financials were on the up. Title by JP Morgan rose by 2.2 percent. Papers from were also in demand Curevac, the more than eleven percent increased. The Tübingen-based biotech company will receive up to 252 million euros from the federal government for the development of a corona vaccine.
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