“Until there is a catalyst”
US stock markets suffer from indecisiveness
26.06.2024, 22:46
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Investors are still keeping their feet on the ground ahead of the release of important inflation data on Friday. Meanwhile, Amazon shares are rising and the company is becoming the fifth company ever to break a magic market value.
The US stock markets closed with moderate gains on Wednesday. Traders held back in anticipation of inflation data, which could provide an indication of when the US Federal Reserve will raise interest rates. After a weak start, the Dow Jones Index The standard values closed slightly higher at 39,127 points. The technology-heavy Nasdaq rose 0.5 percent to 17,805 points. The broad-based S&P 500 lincreased by 0.2 percent to 5,477 positions.
The market’s indecisiveness can be seen in the fact that the Dow and the Nasdaq have moved in opposite directions for four days in a row, said market strategist Ryan Detrick of the Carson Group during the volatile trading day. Chief economist Brian Jacobsen of Annex Wealth Management predicted that this will continue “until there is a catalyst.” This could be provided on Friday by the PCE price index, which is the inflation measure preferred by the US Federal Reserve. At the moment, the financial markets are not expecting the Fed to change interest rates until September at the earliest.
Does Bosch make an offer?
The parcel delivery company surprised with its individual figures FedEx with its forecasts positively. The shares rose 15.5 percent. The parcel delivery company expects earnings per share of 20 to 22 dollars for 2025. The brokerage firm Baird expects a moderate improvement in freight demand at FedEx.
The electric car manufacturer’s investors reacted euphorically Rivian on the collaboration with Volkswagen. The shares jumped by more than 23 percent. In the future, the software for new electric cars, which are due to come onto the market from 2028, will come from a joint venture between the two car manufacturers. The Wolfsburg-based company is spending five billion dollars on the project.
Amazon in the stock market Olympus
Shares of the large appliance manufacturer Hot tub rose by more than 17 percent. As the news agency Reuters learned from several people familiar with the plans, Robert Bosch is considering making an offer for the US competitor. Bosch has already spoken to consultants, said one of the insiders. However, it is not certain that an offer will actually be made.
During the trading day, Amazon.com the fifth US company with a market value of two trillion dollars. According to market participants, investors are investing in technology companies thanks to optimism about artificial intelligence (AI) and the hope of interest rate cuts. The share price rose by 3.9 percent in New York. Amazon is now part of the same select club as technology heavyweights Microsoft, Apple, Nvidia and Alphabet.