Thursday June 10, 2021
Investors are taking courage again
Wall Street doesn’t care about high inflation
Fear of inflation has been around the New York Stock Exchange for weeks. It is all the more astonishing that investors can handle unexpectedly high inflation rates very well. At 5.0 percent, it is higher than it was since August 2008. The S&P 500 even climbed to a new record high.
Investors in the US have not let themselves be disturbed by a surprisingly sharp rise in inflation. Share prices rose even though pre-market consumer prices rose more sharply in May than analysts expected. It is possible that investors on the market have recently feared even higher inflation, which has now not occurred, according to the trade.
For the leading index Dow Jones Industrial only achieved a manageable plus of 0.06 percent to 34,466.2 points. However, other large indices rose more strongly. So the market breadth increased S&P 500 by 0.47 percent to 4,239.1 meters and even rose to a record high. For the tech-savvy Nasdaq 100 it went up 1.05 percent to 13,960.3 points. In the USA, inflation rose surprisingly again in May. Compared to the same month last year, the cost of living increased by 5.0 percent. This is the highest rate since August 2008.
“The surge in demand triggered by the relaxation of the corona-related restrictions is obviously leading to bottlenecks and price increases in parts of the economy,” wrote the Commerzbank experts. Under these circumstances, the US Federal Reserve will increasingly discuss an exit from its bond purchases. These have been a key driver of the rally on the stock exchanges in recent years.
Gamestop rushes off
Shares of Boeing rose at the top by almost three percent, at the end of which only a plus of 0.1 percent remained. According to informed persons, the airline United Airlines is considering a major order for the aircraft manufacturer to renew its fleet. The stock of the logistics company UPS recovered slightly by 1.1 percent from their price slide from the previous day, when new medium-term corporate goals prompted investors to take profit. Analyst Brian Ossenbeck from JPMorgan used the setback to upgrade the shares to “Overweight”. The papers of the video and computer game developer Electronic Arts fell at times by 2.4 percent. The trigger was a report by an industry magazine that the company was the victim of a hacker attack. Subsequently, however, the price made up almost all of the losses.
One focus remained on stocks, which US private investors are currently concentrating on on the Internet and which have been causing severe price fluctuations in isolated cases for months. This again included those of the video game dealer Game stop, of which there was various news. The shares plummeted by almost 30 percent. Gamestop has presented a new management duo and reported a significant increase in sales in the past quarter. However, the company’s plans to use the recently catapulted price level to issue new shares are likely to have a negative impact on the share price. Since the beginning of the year, the price has increased almost twelve-fold. In addition, the company announced that the US agency SEC is currently investigating because of the sharp price fluctuations.
The Euro received no sustained impetus from either the European Central Bank meeting or US inflation data. Most recently, the common currency was quoted at $ 1.2173. The European Central Bank had set the reference rate at 1.2174 (Wednesday: 1.2195) dollars. The dollar had thus cost 0.8214 (0.8200) euros. On the US bond market, government bond prices rose again after initial losses. The futures contract for ten-year Treasuries (T-Note-Future) rose by 0.26 percent to 133.07 points. The yield on ten-year bonds fell accordingly to 1.44 percent.
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