Interest rate issue remains present
US investors cash in on tech stocks
20.06.2024, 22:48
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Subdued mood on Wall Street: New economic data leaves investors somewhat perplexed. After Nvidia’s recent surge, traders prefer to take profits, and other tech stocks are also seeing losses. The Dow, on the other hand, is able to gain significantly.
US investors have put the brakes on the record run driven by the hype surrounding artificial intelligence (AI). The index of the technology stock exchange Nasdaq closed 0.8 percent lower at 17,721 points on Thursday. The broad-based S&P500 lost 0.3 percent to 5473 jobs. The Dow Jones Index The standard values, however, advanced 0.8 percent to 39,134 points.
Investors made gains during trading, including in the stock market star NVIDIA Cash: The shares turned negative and lost 3.5 percent. On Tuesday, the company overtook Microsoft as the most valuable company in the world with a market value of 3.34 trillion dollars. On Wednesday, the US stock exchanges remained closed due to the holiday.
The issue of interest rates and the possible timing of a rate cut by the US Federal Reserve continued to preoccupy investors. Economic data shed little light on the situation. The number of Americans filing new unemployment claims fell on a weekly basis, but the overall strength of the labor market remains. Another dataset showed that single-family home construction in the US fell in May due to persistently high mortgage rates. “I think the Fed needs to see a little more, either conclusive or confirmatory data that the economy may be slowing down. I don’t think we’re seeing that yet,” said Joseph Ferrara, investment strategist at Gateway Investment Advisors.
In Great Britain, the Bank of England (BoE) stuck to its high interest rate policy despite the recent easing on the inflation front. The Swiss National Bank (SNB), on the other hand, followed the interest rate turnaround in March and lowered its key interest rate for the second time in a row.
Accenture launches
Accenture convinced investors with optimistic business prospects. The IT service provider’s shares rose by more than seven percent. Sales growth of between 1.5 and 2.5 percent is expected for 2024 as a whole. Analysts had predicted an average of 1.6 percent. Buoyed by positive study data, Gilead Sciences Up 8.5 percent. Data showed that its long-acting injectable drug was more effective at preventing HIV infections in women than its existing daily pill, Truvada.
Shares of the electric truck manufacturer Nicholas plummeted by 31 percent. The company has announced a so-called reverse stock split. The number of shares in circulation will be significantly reduced in order to improve the price.
A complete overview of today’s stock market events can be found here.