Thursday, November 4th, 2021
Moderna experiences a bad crash
Dow falls behind in price rally
The news of the tightening of economic aid by the Fed continues to cause prices to rise on Wall Street. Only the Dow Jones Index is not doing well. Vaccine manufacturer Moderna is also experiencing difficulties. The company’s papers rush deep into the cellar.
Following the monetary policy decisions of the US Federal Reserve, the US stock exchanges set new records in some cases. After the monetary authorities had only announced the beginning of the exit from the billion-dollar security purchases the previous evening, at least that was achieved S&P 500 and the Nasdaq 100 records again. Investors welcomed the realization that interest rates are likely to remain low for some time to come.
The was burdened, among other things, by slipping stocks from the banking sector Dow Jones Industrial however, a negative exception. Probably the world’s best-known stock barometer remained without a new record. In the end, however, the leading index only fell by just 0.09 percent to 36,124.23 points.
Of the S&P 500 on the other hand rose by 0.42 percent to 4680.06 points, while the technology-heavy Nasdaq 100 even gained 1.25 percent on 16,346.24 points. The growth stocks from the tech industry are generally valued by investors as particularly beneficiaries of low interest rates.
Expert does not see any braking factors
As expected, the Fed is taking its foot off the gas, noted RoboMarkets’ capital market strategist Jürgen Molnar. The key interest rate will remain unaffected, something should not happen here until mid-2022 at the earliest. “So the green light from monetary policy,” said the expert. In combination with a convincing reporting season, there are currently no braking factors.
In addition, the Bank of England did not raise its key rate today, despite speculation to the contrary. Together with the Fed’s conclusion, this put a strain on stocks from the banking sector, where it is generally said that higher interest rates would be beneficial for day-to-day business, for example with loans. The papers of Goldman Sachs fell 2.4 percent in the Dow and those of JPMorgan by 1.3 percent.
Otherwise it was mainly those who stood Moderna-Shares in the spotlight, but this time negative with a price drop of 18 percent. The vaccine manufacturer frightened its investors with a reduced sales forecast for the corona vaccine. The competitor’s shares Biontech were affected. After the last good run in US trade, they plummeted by 7.3 percent.
The shares of formed an opposite pole on the Nasdaq, where Moderna is listed Qualcomm with a price jump of 12.7 percent. The chip company caused enthusiasm with a surprisingly positive look ahead. The company expects to sell up to 550 million 5G-enabled phones this year. Qualcomm is the leading modem supplier for this technology.
Merck remains on the road to success
The rally in the tech sector extended to the entire chip industry in the wake of the Fed decision and Qualcomm’s outlook. The papers were from Nvidia conspicuous with their ongoing record hunt. They really gained momentum again with a course jump of twelve percent. With a market valuation of around 750 billion US dollars, the chip company is heading towards the trillion threshold.
In the Dow, the stock stayed at Merck & Co on the road to success. With a plus of 2.1 percent, they rose again to a record high. In the meantime, it has become known that a Covid-19 drug, which a good month ago also caused a sensation among stock exchange traders, has received its first approval in Great Britain. The drug is said to reduce the risk of hospitalization or death of patients by about half.
Otherwise, there were strong price gains in the small and mid-cap segment at the electric truck builder Nikola after a surprisingly good quarterly report. The usually volatile papers expanded their plus to 21 percent. The company also agreed to a $ 125 million fine to settle SEC investigations into company founder Trevor Milton.
Of the Euro slipped back below the $ 1.16 mark, most recently at $ 1.1555. The European Central Bank (ECB) had meanwhile set the reference rate at 1.1569 (Wednesday: 1.1578) dollars. The dollar cost 0.8644 (0.8637) euros. US Treasuries posted gains. The futures contract for ten-year Treasuries rose 0.44 percent to 131.34 points. The yield on ten-year government bonds fell to 1.52 percent.