Dow strong in the stock market
Wall Street relieved on interest rate outlook
05/26/2022, 10:43 p.m
The US stock market is on the up. Stockbrokers speak of relief about the minutes of the Fed meeting in early May, which led to rising prices the day before. In addition, there are surprisingly strong business figures from the particularly important retail sector.
The US stock markets on Thursday expanded the previous day’s gains. According to stockbrokers, as on the previous day, the fact that the minutes of the US Federal Reserve gave no indication of even more aggressive steps to combat high inflation in the USA had a supportive effect. The Dow Jones Industrial rose 1.61 percent to 32,637.19 points. The leading index could now leave the downward trend that began in April behind.
The market-wide S&P 500 rose by 1.99 percent to 4057.84 points. The technology-heavy Nasdaq 100 gained 2.79 percent to 12,276.79 points. The numerous growth stocks in the index had suffered in particular from the prospect of sharp interest rate hikes in the past few weeks.
“US stocks are rising sharply as investors take the Fed’s statements as evidence of only a gradual tightening of monetary policy to curb inflation,” wrote analyst Edward Moya of broker Oanda. The US Federal Reserve has allayed concerns about aggressive rate hikes in the short term. The focus was on stocks from the badly battered technology sector. Apple initially lost more than two percent. According to insiders, the iPhone manufacturer has doubts about the increase in sales of its smartphone in the current year. The shares then caught up on the losses and closed up 2.3 percent. Medtronic lost almost six percent. The manufacturer of medical technology turned over less than expected in the fourth business quarter.
Broadcom and VMWare win
There was also news about Broadcom and its interest in VMWare. The chip group agreed with the software provider on a takeover for around 61 billion US dollars. Broadcom and VMWare each gained more than three percent. Price rallies put down some stocks from the classic retail trade.
The quarterly figures from Macy’s, Dollar Tree and Dollar General exceeded expectations, which have fallen sharply in recent weeks. The courses then shot up by 13.7 to 21.9 percent. The papers of the Chinese Internet retailer Alibaba rose by almost 15 percent. The lockdowns in China recently drove consumers back to online shopping.
The biggest loser on the Nasdaq 100 was Kraft Heinz shares. A sell recommendation by the bank UBS for the papers of the food giant pushed the price down by a good seven percent. In addition, the second largest shareholder 3G Capital passed a package of 88 million shares to outside investors. The euro rose and was last listed at 1.0723 US dollars. The European Central Bank had set the reference rate at 1.0697 (Wednesday: 1.0656) dollars. The dollar had cost 0.9348 (0.9384) euros.
On the bond market, the futures contract for ten-year Treasuries (T-Note Future) fell by 0.01 percent to 120.578 points. The yield on ten-year government bonds was 2.75 percent.