US indices continue to rise
Merger with Trump company boosts Digital World
February 15, 2024, 11:13 p.m
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Wall Street is still on an upward trend, with the Dow increasing by 0.9 percent. When it comes to individual stocks, investors are primarily reaching for the Digital World share. The US Securities and Exchange Commission had cleared the way for a merger with a company owned by Donald Trump
New economic data gives traders on Wall Street reason to believe that the long-awaited interest rate cut is getting a little closer. The Dow Jones Index the standard values closed 0.9 percent higher on Thursday at 38,773 points. The technology-heavy one Nasdaq advanced 0.3 percent to 15,906 points. The broad one S&P 500 increased 0.6 percent to 5029 points.
US companies cut production in January. US retailers also got off to a surprisingly bad start to the year. This fueled new hopes of long-term falling interest rates from the US Federal Reserve, which is trying to combat inflation with a tight monetary policy without strangling the economy. Analysts were also optimistic. “The economy is doing well, inflation is down significantly and we don’t want to focus on the small disappointments in these numbers,” said Todd Morgan, chairman of investment consultant Bel Air in Los Angeles.
According to Christian Henke from the broker IG, the fact that the Fed will probably not initiate the interest rate turnaround until June due to the slow easing of US inflation pressure has not thrown the global stock markets out of rhythm: “Investors seem comfortable to think that postponed is not canceled.” The expectation of long-term falling interest rates put pressure on it Dollar index down 0.4 percent to 104,278 points. The Euro in return gained the same amount to 1.0769 dollars.
Oil prices are rising
The strong dollar and hopes of an economic upturn after the expected interest rate cuts are supporting oil prices. The North Sea crude oil variety Brent The price rose by two percent to $82.93 per barrel (159 liters). The price for the light US variety WTI rose by around two percent to $78.05 per barrel. A weak greenback makes raw materials traded in dollars cheaper for investors from other currency areas. “The prospect of interest rate cuts is back on the table and that is causing some movement in the market again,” summarized Phil Flynn, analyst at broker Price Futures Group.
When it comes to companies, the US Securities and Exchange Commission cleared the way for a merger of Digital World with a company owned by Donald Trump and thus pushed ahead Digital World share at. The shares shot up by more than 16 percent. The Securities and Exchange Commission (SEC) has declared the registration of a planned merger with Trump’s Media & Technology Group (TMTG) effective, Digital World announced. The former US President wants to use the SPAC company as a takeover vehicle for the IPO of “Trump Social“. Digital World announced that it would announce the date for an extraordinary shareholders’ meeting within two working days at which the merger will be voted on. Digital World shares have been up since January 15th – when Trump was in the primary election of US Republicans won in Iowa during their presidential candidacy – increased by more than 150 percent.
The shares of Deere & Co lost more than five percent. The agricultural and construction machinery manufacturer expects demand for expensive agricultural machinery to be subdued due to high loan interest rates and falling crop prices. What was asked were against it SoundHound with a price jump of 67 percent to $3.76. The chip giant Nvidia had announced a stake in the small specialist in the field of artificial intelligence (AI).