Reluctance despite record highs: Wall Street is in wait

Reluctance despite record highs
Wall Street is in wait

After the Senate passed the huge infrastructure package in the USA, the mood on Wall Street is quite friendly. But there can be no talk of exuberance yet. Investors are only waiting for the consumer price data to be released in the middle of the week, which could provide information about the Fed’s course.

Wall Street investors have been holding back from buying stocks ahead of the upcoming US inflation data. The US Standard Values ​​Index Dow Jones closed on Tuesday 0.5 percent higher to 35,264 points after rising to an all-time high in early trading. The technology-heavy one Nasdaq on the other hand, fell by 0.5 percent to 14,788 points. The broad one S&P 500 gained 0.1 percent to 4436 points.

S&P 500 Index, Ind. 4,436.44

Investors hope that the publication of the US inflation rate in July, which is due on Wednesday, will provide new information on the further course of the US Federal Reserve (Fed). The prospect of a price swing and an early reduction in bond purchases made stockbrokers cautious.

The US Senate voted with votes from both parties for President Joe Biden’s billion dollar infrastructure package. The plan for the most extensive nationwide repair of roads, bridges and airports in decades took an important hurdle. However, the Democratic President of the House of Representatives, Nancy Pelosi, has said that her chamber will not deal with the bill until the Senate has also passed a second, controversial Republican package worth $ 3.5 trillion. This could mean months before the Biden infrastructure package is available for signature.

AMC 27.43

The spread of the delta variant of the corona virus put pressure on the buying mood. “We are in a kind of waiting loop. The Delta variant prompts investors to put their hands on their laps and do nothing with their portfolios at the moment,” said Sam Stovall, chief investment strategist at the analyst firm CFRA. The individual values ​​went AMC Entertainment on ascent and descent. After a strong start, the papers closed more than six percent in the red. Investors were initially happy about a surprisingly strong turnover in the second quarter, because the moviegoers streamed into the movie theaters again after the lockdown.

A recovery in the oil price also provided a tailwind for energy companies Halliburton, ExxonMobil, Chevron and Marathon Oilwhich increased between 1.7 and 4.5 percent.

Investors on Europe’s stock exchanges also felt their way forward during the holiday season. In view of the price highs, even small movements are enough to achieve new records. The broad European share index recorded an increase of 0.4 percent Stoxx600 a fresh record high of 472.37 points. the EuroStoxx50 noted 0.3 percent higher at 4190.78 points. the Dax closed 0.2 percent more firmly at 15,770.71 positions.