Tuesday, January 04, 2022
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Investors are already thinking about the end of the pandemic
On the second trading day of the new year, the rally on the US stock markets continued only partially. The Dow Jones Industrial and S&P 500 now climb to record highs before profits crumble again. Investors only touch technology stocks with pointed fingers.
The New York stock exchanges failed to find a common direction on Tuesday. The Dow Jones index of defaults climbed a new record high, while tech stocks were on the sell list. “As the spaces in the trading rooms on Wall Street fill up again, investors are slow to take risk,” said Scott Ladner, chief investment strategist at asset manager Horizon Investments. the Dow Jones Index closed 0.6 percent higher to 36,799 points. The technology-heavy one Nasdaq on the other hand, fell 1.3 percent to 15,622 points. The broad one S&P 500 lost 0.1 percent to 4793 points.
Despite the massive increase in the number of infections in the USA, worries about the worsening corona pandemic faded into the background. According to the findings of the World Health Organization (WHO), Omikron leads to milder symptoms than other coronavirus mutations. This gives hope that the pandemic could end sooner, said market analyst Art Hogan of the New York broker National Securities.
Among other things, stocks that had previously come under great pressure due to the pandemic were in demand. The cruise operator’s titles Carnival rose by 1.5 percent, shares in the airline American Airlines gained 1.4 percent. At the top of the favor of investors were the shares of fordafter the US automaker announced that it would double annual production capacity for the electrically powered F-150 Lightning pickup to 150,000 vehicles. The titles shot up by almost twelve percent to their highest level in two decades.
Sentiment was dampened by current data from US industry. Due to global delivery problems, among other things, it lost momentum at its high rate of growth. The purchasing managers’ index fell in December by 2.4 to 58.7 points, its lowest level since January 2021. Experts had expected a less pronounced decline.
On the other hand, there was confidence in the oil market. US light oil WTI went up by up to 2.1 percent to 77.64 dollars per barrel (159 liters). According to insiders, the Opec + promotional cartel, which includes member states as well as Russia, wants to increase the daily production by 400,000 barrels as planned. The USA had asked for an even greater expansion. However, Opec + does not assess the economic outlook as bad and does not expect any collapse in demand.