Wall Street closes friendly: Investors shake off inflation fears

Wall Street closes nicely
Investors shake off fears of inflation

After three trading days with heavy losses, Wall Street treats itself to a cheerful end to the weekend. Investors are leaving concerns about interest rate hikes and inflation behind. Optimism is returning, especially when it comes to tech values.

After three downward trading days, the US benchmark index Dow Jones Industrial made up some of its recent losses. The focus of investors on Wall Street shifted somewhat from the topic of inflation and there was more optimism for stocks, especially in the technology sector. Of the Dow went 0.50 percent higher at 36,100.31 points. On a weekly basis, he lost 0.6 percent. The record high reached on Monday at just under 36,566 meters remains within reach. The other major New York indices were even more lively: the market breadth S&P 500 advanced 0.72 percent to 4682.85 points. The technology-heavy one Nasdaq 100 topped this with an increase of 1.04 percent to 16,199.89 points.

The largely positive reporting season is gradually coming to an end and continues to support the stock markets, even if the high inflation is unsettling. Any publication of inflation rates that are above expectations could lead to major swings in the equity and bond markets, stated chief investment strategist Mark Haefele of UBS Global Wealth Management. But the topic is not yet strong enough to end the rally on the stock market. However, fears of inflation are now weighing on consumer confidence in the USA, as the index collected by the University of Michigan this Friday made clear. It fell to its lowest level in ten years in November.

J&J split arrives

Johnson & Johnson 144.04

Among the individual stocks in the Dow were the stocks of Johnson & Johnson with a plus of 1.2 percent to the winners. The group wants to split into two listed companies. In addition, the consumer goods division is to be separated in the next 18 to 24 months, as CEO Alex Gorsky said to the “Wall Street Journal”. The other division will then be the much larger pharmaceutical sector with prescription drugs and medical technology.

Walt Disney On the other hand, suffered further from the figures presented on Wednesday for the fourth fiscal quarter, in which the important streaming business in particular had disappointed. The shares lost another 1.5 percent as the bottom of the Dow, but stayed just above their previous day’s low.

The Dow was also supported by a number of technology stocks it contained, benefiting from the particularly buoyant recovery in the sector, which is typically pegged to the Nasdaq indices. Apple, Microsoft and Salesforce are considered to be representatives of this industry and gained 1.2 to 1.4 percent in the Dow.

Tesla 899.10

For Tesla however, the Nasdaq fell by 2.8 percent to around 1033 dollars. They moved away from the record high of $ 1,243 from the previous week. Tesla boss Elon Musk had sold more shares in the electric car pioneer after a sensational Twitter vote in the past few days. Since the beginning of the week, their value has totaled around 5.7 billion US dollars. Overall, the company is worth more than a trillion dollars on the stock market.

In addition to Tesla, there was also its smaller competitor Rivian in focus. The shares made further strong gains on their only third day on the stock exchange. Most recently it went up 5.7 percent to just under $ 130. Compared to the issue price of 78 dollars, they have already increased two-thirds. Measured in dollars, the group weighs more on the stock market than the German car maker Daimler. And Rivian has not yet made any significant sales and is also in the red.

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