Tech stocks support Wall Street
US investors shake off interest rate worries
November 10, 2023, 10:37 p.m
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The US stock exchanges are already putting their worries behind them at the end of the week after Fed Chairman Powell’s tough words. Powell’s rhetoric is tougher than the Fed’s actions, analysts say. Investors are particularly keen on tech stocks.
After the previous day’s setback, the US stock exchanges closed with significant increases in the evening and more than made up for the losses. Investors recently pushed aside concerns about interest rates that had arisen again. The Dow Jones Index closed 1.2 percent higher at 34,283 points. For the S&P 500 it went up by 1.6 percent. The Nasdaq Composite was 2.0 percent higher. There were a total of 2103 (Thursday: 754) price winners and 757 (2126) losers. 68 (58) titles closed unchanged.
The topic of discussion in the market continued to be US Federal Reserve Chairman Jerome Powell’s statements from the previous day, which were interpreted as hawkish. Powell had said that future progress in tackling inflation may have to come by limiting demand. While the Federal Reserve is pleased with its success so far in easing price pressures, it is not sure whether interest rates are high enough to bring inflation down to the 2 percent target in the long term.
In response to these statements, share prices fell, while yields on the bond market rose sharply. The markets continued to assume that the Fed had finished raising interest rates, the market said, given the significant recovery at the end of the week. “The Fed’s actions are inconsistent with its tough rhetoric,” said Spartan’s Peter Cardillo.
US consumer index falls
At the Bond market Yields at the long end fell slightly after the previous day’s strong rise. The yield on 10-year bonds fell by 1.0 basis points to 4.61 percent, and the yield on 30-year bonds fell by 3.9 basis points to 4.73 percent. At the Foreign exchange market The dollar appeared somewhat lighter after the previous day’s surcharges. The dollar index fell 0.1 percent.
The Oil prices rose. The prices for the varieties WTI and Brent increased by up to 2.0 percent. However, they fell on a weekly basis. With the latest sell-off, the risk premium due to the war between Israel and Hamas has been priced out, as the conflict has so far remained limited to the region, according to market participants. ING considers the sharp price decline to be exaggerated because the fundamental data point to a tighter supply and therefore higher prices, at least in the short term. The Gold price fell significantly after the slight recovery the day before. The price of the troy ounce fell by 1.1 percent. On the economic side, things got cloudy US consumer sentiment in November. The consumer sentiment index calculated at the University of Michigan fell to 60.4. Economists had expected a reading of 63.7. In the survey at the end of October it was 63.8.
Disney in the red – Groupon and Plug Power collapse
Disney (-2.3 percent) is putting its TV channels to the test. As part of a strategic review of its television business initiated by CEO Bob Iger, the company has identified sales and the transfer of channels into its joint venture with Hearst as possible scenarios, people familiar with the matter said. Groupon were considering a capital increase. The shares of the voucher portal collapsed by 34.8 percent. The figures for the fourth quarter took a back seat.
Plug power fell 40.3 percent after the hydrogen and fuel cell maker warned it would struggle to stay afloat next year without raising additional cash. After Illumina After lowering the annual forecasts, the share price fell by 8.0 percent. In the third quarter, the DNA sequencing specialist earned more than expected, but sales were below analyst consensus.