Signals bring relief
Wall Street keeps moving forward
03/28/2022, 10:24 p.m
The US stock exchanges continue to dwell on the war against Ukraine, the question of oil prices and speculation about the upcoming rate hikes. In the first case, hopes lie in the forthcoming talks, in the second case lower demand from China could depress prices. Overall, buyers dominate the stock market.
The US stock exchanges ended the first trading day of the new week with premiums. The declining oil price determined the courses as well as market interest rates, inflation concerns and reports on the forthcoming negotiations between Russia and Ukraine. the Dow Jones Index improved by 0.4 percent to 34,956 points. For the broader S&P 500 was up 0.7 percent. The more tech-heavy Nasdaq Composite gained 1.3 percent.
Investors drew hope from new negotiations between Ukraine and Russia, which are scheduled to take place in Turkey on Tuesday. Ukrainian President Volodymyr Zelenskyy has signaled his readiness to consider the issue of his country’s neutrality. Meanwhile, the Financial Times reported that Russia was no longer insisting on the so-called denazification of Ukraine, i.e. regime change.
Meanwhile, market conviction is growing that the US Federal Reserve will aggressively fight high inflation. Currently, two rate hikes of 50 basis points each are being priced in at the next two Fed meetings, reported Neil Wilson, an analyst at Broker Markets.com. He referred to recent hawkish statements by several US Federal Reserve officials.
Tesla with another stock split in the plus
Yields on 10-year US bonds rose temporarily to over 2.51 percent, the highest level since early 2019, but later bounced back at the long end of the yield curve, boosting technology stocks in particular. They are considered to be particularly vulnerable to rising interest rates.
The electric car manufacturer Tesla intends to obtain shareholder approval for an increase in the number of shares at its annual general meeting. Shareholders should receive the additional papers in the form of a dividend, Tesla said in a submission to the US Securities and Exchange Commission. That would be the second stock split in two years. The share rose by eight percent.
AT&T rose modestly 0.1 percent after the company detailed its plans for a stock split following the merger of WarnerMedia and Discovery Inc. Accordingly, for every AT&T share to be issued tax-free on April 4, 0.24 shares of Warner Bros. will then be listed under Warner Bros. Discovery. door dash improved by 8.7 percent. The operator of the delivery service app of the same name has agreed to work with the wholesaler BJ’s Wholesale Club Holding.
Meanwhile, analysts at Goldman Sachs took a look at various semiconductor stocks. They have Advanced Micro Devices (AMD 0.5 percent) from the Conviction Buy List, but confirmed the buy recommendation. Microchip Technology (0.4 percent), Teradine (minus 0.9 percent) and Korvo (down 1.5 percent) were downgraded to neutral because analysts see economic headwinds for the sector.
Oil prices drop significantly
It went down significantly by around nine percent with the oil prices. Market participants referred to fears of lower demand from China as a result of the new lockdowns. There are also reports that the Houthi rebels have announced a multi-day ceasefire. The rebels from Yemen have recently repeatedly attacked targets in neighboring Saudi Arabia, including a plant owned by the Aramco oil company in Jeddah.
The Opec+ conference on Thursday was also in view. Since millions of barrels of Russian oil have been taken off the market as a result of the sanctions due to the Russian attack on Ukraine, the alliance between the Opec cartel and its cooperation partner Russia is being put to the test. Because OPEC is under pressure from the West to expand production and provide more supply for the scorned oil from Russia. If OPEC gives in to Western pressure, Russia will be upset, it said in the market. With the fixed dollar he gave gold price more clearly after. In addition, the interest in security was limited.