Dow Jones scratches at all-time high: Wall Street resumes record hunt

Dow Jones is scratching its all-time high
Wall Street resumes record hunt

After a weak start to the week, the US stock exchanges made significant gains in the middle of the week. The positive mood was supported by the hope of a quick recovery in the global economy. Advances in the H&J vaccine are also contributing to this.

Investors are re-entering the US stock market in the hope of a powerful economic recovery from the coronavirus impact Of the Dow Jones Index lock 1.4 percent higher at 31,962 points, during the S&P 500 increased by 1.1 percent (3925). For the tech-savvy Nasdaq-Composite went up 1.0 percent (13,597).

Johnson & Johnson 133.96

It is true that rising commodity or property prices drove inflation, said Patrick Leary, chief investment strategist at brokerage firm Incapital. The US Federal Reserve does not seem to worry so far. Fed chief Jerome Powell said it could take more than three years to hit the two percent inflation target. On Tuesday he had already confirmed that he wanted to continue the securities purchases until further notice. However, Powell was only able to slow the rise in bond yields temporarily.

The trend-setting ten-year US Treasuries yielded 1.435 percent at times, as high as they were last around a year ago. Rising bond yields mean higher financing costs for states and companies. At the same time, banks can expect greater profits from the traditional lending business. As a result, the shares of Bank of America, Citigroup and JPMorgan rose around two percent each.

The general economic optimism was also fed by the positive assessment of the effectiveness and safety of the coronavirus vaccine by Johnson & Johnson (J&J) by FDA officials. This brought the means closer to approval. J&J shares increased by 1.6 percent.

Crude oil investors are also banking on the economy to normalize once the pandemic has been overcome. The US variety WTI increased in price 2.6 percent to $ 63.28 a barrel (159 liters), although US inventories rose surprisingly. Investors expected that the cold snap in the US state of Texas will affect production there longer than previously thought, said analyst Phil Flynn from the brokerage firm Price. In the slipstream of the rising WTI price, the shares of the oil companies lay Exxon and Chevron each more than three percent to.

Bitcoin Liquid Index
Bitcoin Liquid Index 50,457.68

Meanwhile, it stabilized Bitcoin after the 25 percent drop in the share price in the past few days. The oldest and most important cyber motto rose 0.6 percent to $ 48,788. It is remarkable that investors immediately took the opportunity to get involved, said Emden. "It remains to be seen whether it is just a technical countermovement or whether a new upward dynamic can develop again."

Against this background, investors also took hold of values ​​from the cryptocurrency sector and companies that deal with the blockchain technology on which Bitcoin & Co is based. So the papers rose from Riot, Marathon and Silvergate by up to eight percent. Also the title of the electric car manufacturer Tesla (+ 6.4%) and the software company MicroStrategy (+ 19%), who each invested billions in Bitcoin, picked up again.

The stock of the video game retailer GameStop was temporarily suspended from trading shortly before the market closed. After resuming trading, the share was initially 103 percent up. At the beginning of the year, the papers had become the pawn of speculators: small investors forced hedge funds with concerted purchases to cancel bets on the expiry of the GameStop rate and thus sometimes put them in a mess.

. (tagsToTranslate) Wall Street (t) Stock Trading (t) Dow Jones