Tuesday, July 6th, 2021
Nasdaq continues to climb
Wall Street is back with a record
After Independence Day on Sunday, the Dow Jones Index started the week with losses. While the standard values slide down slightly, the Nasdaq reached a new record high, also boosted by falling market interest rates.
Wall Street is back with a new course record from the long weekend. The Dow Jones index fell 0.6 percent to 34,577 points, as did the S&P 500 (-0.2 percent to 4,343 points), but the Nasdaq composite rose 0.2 percent and closed at 14,664 Points.
The US stocks of Chinese companies fell more sharply because the Beijing government is putting companies on the curb. The mood in the US service sector fell surprisingly sharply to its lowest level in almost half a year. Apparently, investors assumed that the economic recovery from the aftermath of the coronavirus pandemic would not be as strong as hoped, said Neil Wilson, chief analyst at online broker Markets.com.
Some investors therefore increasingly turned to US bonds. This pushed the yield on ten-year government bonds down to 1.352 percent, the lowest level since February. The slowdown in economic growth is positive for bonds because a premature cutback in securities purchases by the US Federal Reserve is less likely, said Jim Barnes, bond chief at Bank Bryn Mawr Trust.
Meanwhile, the oil price went up and down. The US variety WTI initially rose to a six and a half year high of $ 76.98 a barrel (159 liters) and Brent-Oil from the North Sea reached $ 77.84, its highest level in almost three years. However, fear of a price war in the major exporting countries pushed prices down by up to 3.7 percent at the close of the market.
Opec +, to which other producing countries such as Russia belong in addition to the members of the export cartel, was unable to agree on new production quotas after several days of negotiations. According to stockbrokers, the current restrictions remain in force. “The failure of the agreement could also mean that the United Arab Emirates and other countries no longer adhere to the agreement and increase their production faster and more strongly than agreed,” warned Commerzbank analyst Eugen Weinberg.
In the case of equities, stocks that had only been listed in the US for a few days broke off Didi by 20 percent. The Beijing government blocked the transport operator’s app from downloading. She accuses the company of illegally collecting user data. “The decision of the authorities was apparently designed to achieve maximum effect and embarrassment,” said Markets.com expert Wilson. In the wake of Didi, the titles of other Chinese companies such as Alibaba, JD.com, Baidu and iQIYI up to 4.6 percent. Weibo, on the other hand, recorded the largest price jump in almost half a year, with a price increase of almost 16 percent at times.
According to insiders, the Chinese Twitter rival is to be taken off the stock exchange. WeiboBoard chairman and major shareholder Charles Chao have made an offer to the remaining owners of 90 to 100 dollars per share. However, Chao rejected a Weibo withdrawal from the stock market. The share held up after that 6.3 percent up.
The MicrosoftShares trended unchanged despite the Pentagon’s announcement that it is getting out of the JEDI cloud computing contract with the software maker, which could be worth $ 10 billion over a decade. The Department of Defense plans to re-tender the contract after Amazon contested the bid. Amazon became more expensive 4.7 percent and thus reached an all-time high.
.