Trump is very popular
Wall Street is shifting gears
March 4, 2024, 11:06 p.m
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After the recent surge on the US stock markets, trading was rather slow at the start of the week, but at the end there was a selling mood on Wall Street. After the Supreme Court ruling on Donald Trump, companies that could benefit from a Republican election victory are in demand, especially a software developer.
US investors have hit the brakes after the recent record run on the stock markets. The Dow Jones Index the standard values closed 0.3 percent lower at 38,989 points on Monday. The technology-heavy one Nasdaq fell 0.4 percent to 16,207 points after hitting an all-time high on Friday. The broad one S&P 500 lost 0.1 percent to 5130 points. Investors were waiting for US Federal Reserve Chairman Jerome Powell’s hearing before the US Congress beginning on Wednesday, as well as the Fed’s economic report and the labor market data due at the end of the week.
When it comes to the question of how quickly and how much the Fed will cut interest rates, market participants have already scaled back their expectations. If the economy performs stronger than expected, easing monetary policy too early could fuel inflation again. “The biggest near-term headwind could be hawkish tones from Powell or data pointing to relative strength in the labor market, which would make the likelihood of rapid Fed cuts less likely,” said Michael James, equity analyst at Wedbush Securities in Los Angeles.
Antitrust fine hits Apple
The stock market slipped Apple after an EU antitrust fine by 2.5 percent. The iPhone manufacturer has to pay more than 1.8 billion euros because of anti-competitive behavior in the music streaming business. The failed takeover JetBlue sent Spirit Airlines on the decline. Spirit shares fell by almost eleven percent. A US judge has ruled that the proposed deal could hinder competition in the domestic aviation market. The companies then terminated the $3.8 billion merger agreement. JetBlue shareholders obviously liked this: shares rose 4.3 percent.
The U.S. Supreme Court’s approval of Donald Trump’s participation in the primaries boosted stocks that could benefit from a Republican victory in the presidential nomination race. The price of the stock exchange vehicle Digital World Acquisition (DWAC) rose by around 18 percent. Trump wants to take his social network “Truth Social” public with the help of the so-called SPAC company. Shares of the software developer rose even steeper Phunware, who was hired by Trump’s 2020 presidential re-election campaign to develop a phone app. The shares rose by 81 percent. The shares of the video platform popular with conservatives Rumble won nine percent.
The increase in a takeover offer for Macy’s drove up the shares of the traditional department store chain. They gained 13.5 percent to $20.45. The real estate investor Arkhouse and the hedge fund Brigade Capital have said they have increased their joint offer by around 14 percent to $24 per share from $21. The inclusion in the S&P 500 ensured Great Micro Computers and Decker’s Outdoor for price gains. The shares of the manufacturer of computers for data centers climbed by 18.6 percent, those of the fashion group by 2.6 percent. The stocks will replace the regional bank Zions and the household appliance provider Whirlpool in the selection index from March 18th.