Tech values ​​catching up: Wall Street is bursting with power

Thursday March 11th 2021

Tech values ​​catching up
Wall Street is bursting with strength

Wall Street investors remain in record-breaking moods thanks to encouraging signals from the US job market and the pandemic battle. An easing in bond yields, the steep rise of which recently fueled inflation concerns, is also improving sentiment.

The New York stock market continued to be in strong shape. After the leading index Dow Jones Industrial had reached a record high for the fourth day in a row, this has now also been achieved S&P 500. The market-wide index went out of trading with an increase of 1.04 percent to 3939.3 points. The Dow gained 0.58 percent to 32,485.5 points. The was still catching up Nasdaq 100 with a plus of 2.36 percent to 13,052.9 points. The technology-heavy selection index had corrected by twelve percent from its all-time high in mid-February to last Friday, but has since increased by almost seven percent.

The number of initial jobless claims last week in the US fell more than expected. Nevertheless, this did not affect the prices on the American bond market. The futures contract for ten-year Treasuries (T-Note-Future) recently rose by 0.06 percent to 132.6 points, while the yield on ten-year government bonds fell to 1.52 percent. Recently it had risen to 1.6 percent and above all let the highly valued tech stocks slide. The trigger was the fear of rising inflation in view of Joe Biden's billion dollar rescue package to cope with the corona crisis, which the US president will put into effect with his signature later this day.

Big tech values ​​like Tesla and Facebook gained on the penultimate trading day of the week by 4.7 and 3.4 percent respectively. Facebook wants to place more advertising in shorter videos and thus attract more influential people in the social media area. The online network wants to defy the short video app Tiktok. Meanwhile, stocks from held up negatively in the tech sector Oracle emerged. The strong cloud business with IT applications and storage space on the Internet gave the software company a further boost in the past quarter, but the papers still sagged by six and a half percent. The announcement of further share buybacks did not help either. The shares had recently hit a record high, so investors are now reaping profits for the time being.

Boeing on the rise

There was positive news for Johnson & Johnson, whose corona vaccine has been approved by the European Union on the recommendation of the drug authority EMA. The EU expects the first deliveries in April. The advantage of the Johnson & Johnson vaccine is that it only needs to be administered once, which could speed up vaccinations. The stocks listed in the Dow reacted little to this and ended trading virtually unchanged.

The aircraft manufacturer's papers were once again at the top of the leading index Boeing by a further 2.7 percent. According to insider information, the Airbus competitor is about to receive a major order from Southwest Airlines for the 737 Max. For some time now, Boeing shares have also benefited from the trend on the stock market to papers of the "old economy" and from the aviation industry's hopes for an approaching end Corona crisis.

The shares of the dating platform Bumble rose after the first publication of quarterly figures since the IPO by almost eleven percent. Investors thus rewarded failed sales and a positive outlook better than expected. People want to meet again. The demand for dates after the end of the pandemic is likely to increase.