The gloomy mood on the stock markets in New York is gone for now, now it's time to catch up. Technology stocks in particular are gaining ground. Including Tesla and Apple – but there is also a clear loser.
After the decline of the past few trading days, Wall Street has gone on a recovery course. The tech sector in particular led the market's rebound from its worst three-day crash since March. The technology-heavy Nasdaq composite had posted a price slide of over 10 percent since its record high last week. Nevertheless, the index is still well above its March lows. Despite the recent correction, critics still considered the technology sector to be overvalued.
"Things are calming down significantly. We saw a correction that would have needed weeks ago. Now investors are faced with the question of whether to buy into the weakness," said ThinkMarkets analyst Fawad Razaqzada. Of the Nasdaq Composite increased by 2.7 percent. Of the Dow Jones Index rose 1.6 percent to 27,940 points after an excursion to over the 28,000 mark. Of the S&P 500 gained 2.0 percent. The technology stocks were in the Dow Microsoft and Apple at the top with premiums of 4.3 and 4.0 percent respectively. The technology, software and semiconductor industries in the S&P 500 increased by up to 3.4 percent. At Nyse there were 2,292 (Tuesday: 664) course winners and 742 (2,385) losers. 50 (46) shares closed unchanged.
However, participants did not want to speak of a trend reversal, because the negative factors of the trade conflict, the US election and the corona pandemic remained. Especially in the hot phase of the election campaign, an intensification of the trade dispute between the USA and China cannot be ruled out, it said. On the other hand, it was seen as positive that the Republicans in the Senate had made a new push in terms of the Corona aid package.
Tesla shares recover – Tiffany takeover on the brink
Among the individual values, the recovered Tesla stock with a plus of 10.9 percent also from their 21 percent drop in price the previous day. The disappointment about the missed inclusion in the S&P 500 had crashed the titles. Tiffany & Co's stock was down 6.4 percent. The luxury goods group LVMH threatened to cancel the takeover of the jewelry retailer Tiffany.
The Slack stock collapsed by 13.9 percent. The communication service provider achieved strong customer growth and unexpectedly high sales in its second fiscal quarter thanks to the corona-related trend towards home work. Slack also reduced its loss and raised its full year outlook. However, the statements, which are a measure of the actual business transacted during the quarter, are disappointing.
Lululemon fell by 7.4 percent despite better-than-expected second quarter numbers. Analysts criticized the high inventory levels and the threat of depreciation at the sporting goods manufacturer. zoom had reiterated the long-term margin outlook, the title of the provider of communication technology for video images shot up by 11 percent.
Oil prices are recovering
The Oil prices made up for part of the previous day's losses. The prices had slipped to their lowest level in two months. The Energy Information Administration of the US Department of Energy had raised its price projections for 2020 for the oil grades WTI and Brent. However, in view of the increasing production volumes of the oil cartel Opec and its allies, skeptics warned of further price slides in the face of currently still subdued demand. The price of a barrel of the US variety WTI rose 3.5 percent to $ 38.05. For European reference oil of the variety Brent it's up 2.5 percent to $ 40.79.
Of the dollar gave up part of its previous day's profits, however, the dollar index fell by 0.2 percent. The analysts at MUFG saw many reasons for a rising greenback. Without agreement of the parties in the USA on a further stimulus package for the economy, investors on the foreign exchange market are likely to head for safe havens such as the dollar or the yen. Hence, the Republican push weighed slightly on the dollar.
Of the Gold price with the slight weakness of the dollar increased its previous day's profits as it climbed to its highest level in a week. The troy ounce gained another 0.8 percent to 1,948 dollars – also supported by disappointed hopes for a coronavirus vaccine candidate from Astrazeneca.
Of the Bond market was weighed down by the good mood among stocks. The yield on ten-year US Treasuries rose 2.3 basis points to 0.70 percent. The treasury's record issuance on the primary market this week could cause movement.
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