Tech stocks in demand
Dow rally stalls
December 5, 2023, 11:07 p.m
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Ahead of the publication of the new labor market report, investors on Wall Street are keeping a low profile. Government bonds are in demand and their returns are falling as a result. Securities from technology giants such as Apple and Tesla are rising, while the Dow is closing in the red.
The guesswork surrounding the US Federal Reserve’s future monetary policy course is making Wall Street investors nervous. The Dow Jones Index the standard values closed 0.2 percent lower at 36,124 points on Tuesday. The technology-heavy one Nasdaq On the other hand, it advanced 0.3 percent to 14,229 points. The broad one S&P 500 lost 0.1 percent to 4567 points.
Investors are hoping that the economic data due later in the week will provide clues about the Fed’s timetable for interest rate cuts. The monetary authorities are trying to combat inflation with increased interest rates and cool down the hot labor market without strangling the economy. A US Labor Department survey released on Tuesday showed signs of a slowdown. However, analysts were cautious. “The labor market is weaker, but not so weak that the Fed would need to cut interest rates or threaten a recession,” said Paul Nolte, an advisor and strategist at asset manager Murphy & Sylvest. Investors are now eagerly awaiting the official labor market figures from the US government due on Friday.
Investors were once again increasingly hopeful that interest rates would fall in the coming year Government bonds grab. In response to the rising price, the yield on ten-year US bonds fell to 4.180 percent, its lowest level in three months. On Monday they had returned 4.286 percent.
The decline in yields supported the securities of technology giants such as Apple, Tesla and Nvidia, which gained between 1.3 and 2.3 percent. Technology stocks rise when yields fall because investors tend to shift their investments away from low-yielding bonds and into potentially higher-yielding stocks of high-growth companies.
At the Oil market After a jump of a good one percent, prices turned negative again. The North Sea crude oil type Brent and the light US type WTI fell by a good half a percent each to 77.54 and 72.63 dollars per barrel (159 liters). Russian Deputy Prime Minister Alexander Novak announced that the OPEC+ oil cartel was ready to extend its production cuts in the first quarter of 2024. However, uncertainty about global fuel demand outweighed supply fears. The latest decision by OPEC+ on production volumes had investors skeptical on Monday. Since the agreed supply cuts are voluntary, analysts say it is questionable whether producers will fully implement them or not.
Procter & Gamble has to spend billions
When it came to the individual values Procter & Gamble negative pressure. The shares of the consumer goods multinational fell by a good three percent. Because of the strong dollar, the company is planning a restructuring program in certain markets and is facing billions in expenses.
The US-listed shares of Chinese companies also flew out of the depots. The titles of Alibaba, Bilibili and JD.Com each lost between one and just under two percent. The People’s Republic is threatened with a worse credit rating from the US rating agency Moody’s. The planned release date of a new video game from the Take-Two subsidiary Rockstar Games However, it was not well received by investors. The software developer’s shares lost 0.5 percent. The release of the sixth part of the popular Grand Theft Auto (GTA) series is planned for 2025, Rockstar Games indicated in the first official trailer. “The problem is, there is still no more precise release date,” said Andrew Uerkwitz, an analyst at US investment bank Jefferies. “This is fueling fears of a delay until Christmas 2025.” (Report by Zuzanna Szymanska. If you have any questions, please contact our editorial team at [email protected] (for politics and economics) or [email protected] (for companies and markets).) 2023-12-05T21: 30:40,000Z