Most recently, the US Federal Reserve made the courses and drove the US indices. But after an August with historic profits, the trade is running out of steam. This is ensured by the attraction offer at Tesla and Apple for new buyers.
The US stock exchanges began the new trading week in two. The clear favorites of the day were stocks from the technology segment, which is considered the winner of the corona pandemic, while standard stocks lagged behind. All three major indices closed August with a plus of at least seven percent and thus in some cases also experienced the best August in 36 years. For the Nasdaq composite, there was even an increase of around ten percent in the past month.
The most recent positive impetus comes from the US Federal Reserve and its change of direction to now pursue an average inflation level instead of a fixed inflation target. For investors, this is a clear signal that interest rates will remain low for longer. Another driver is that hopeful news about the development of corona vaccines keeps making the rounds.
The dangers come back into focus
Of the Dow Jones Index fell by 0.8 percent to 28,430 points, with Walt Disney, JP Morgan and Boeing at the end with losses of up to 2.7 percent. Of the S&P 500 narrowly tended to claim the tech-heavy Nasdaq-Indices gained up to 1.0 percent.
With the end of the vacation period, however, it could get more restless again, warned observers. When the congress returns from the summer break, its disagreement with regard to further corona aid programs, as requested by the country's central bank, should come to the fore again. In addition, the presidential election campaign is entering the heated phase, and the trade dispute with China is still smoldering and harbors uncertainties.
The topic of the day was the simultaneous stock splits for the two investor favorites and high flyers Apple and Tesla. After the prices of both companies recently reached lofty heights, they were optically made cheaper to attract more investors. Apple shareholders now have four times as many shares in their depots, while Tesla has five times as many as before – albeit at a correspondingly lower price. For Apple it went up 3.4 percent as the Dow winner of the day to now $ 129.04, Tesla even made a jump of 12.6 percent and still cost $ 498.32 even after the fifth. According to Lindsay Bell of Ally Invest, split stocks historically outperform the S&P 500 index by 15 percent in the year after the split.
Because the weight of the technology sector in the Dow has decreased with the Apple split, changes that had already been decided on took effect at the start of the week. The aim is to depict the US economy more realistically. Salesforce.com, Amgen and Honeywell are now members of the Dow, Pfizer, Exxon Mobil and Raytheon had to vacate their seats. Honeywell lost 1.8 percent while Amgen and Salesforce bring in small profits. The three titles had already benefited from the inclusion in advance. Exxon Mobil were 1.8, Raytheon 2.0 and Pfizer 0.4 percent in the red.
In the red were the shares of those companies that were recently said to be interested in buying Tiktok or that had expressed this interest. With the new specification from China, buying should be more complicated. Walmart gave around 1.0, Oracle by 1,2 and Microsoft by 1.5 percent.
Amazon gained 1.4 percent. The online mail order company Amazon has received permission from the US aviation safety authority for parcel deliveries with drones. The delivery company UPS received permission from US authorities to operate a "drone airline" last year.
Experienced a price explosion of over 170 percent Aimmune Therapeutics, fueled by a takeover bid from Nestle. The Swiss are interested in Aimmune's drug Palforzia for peanut allergy and value the company at $ 2.6 billion.
The dollar was still on the downside, with the index down 0.2 percent. At 1.1935, the euro was recently not far from its annual high of 1.1966 dollars. The yuan has risen against the dollar to its highest level since May 2019. The dollar continues to suffer from recent Federal Reserve decisions that underpin its loose monetary policy.
The weaker dollar hardly supported the prices of commodities traded in dollars. The barrel of US crude oil of the grade WTI fell 0.3 percent. Traders referred to data from the US Energy Administration, according to which oil production in the US had increased by 4.2 percent in June to May. Of the Gold price rose slightly, observers pointed to higher inflation expectations as the trend towards support.
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