The hope for a corona vaccine this year will ensure a good mood on the US stock exchanges at the start of the week. The vision of multi-billion dollar acquisitions in the technology sector is delighting investors. After two weeks of losses, the indices are pointing up again.
The US leading index Dow Jones Industrial has risen significantly after two consecutive weeks of losses. Mergers and acquisitions heated the mood on Wall Street. In addition, hopes that a corona vaccine would soon be available raised the mood. Against this backdrop, investors mainly grabbed the cyclically sensitive technology stocks, which had come under severe pressure at the beginning of the month after their latest record rally. Of the Dow climbed 1.18 percent to 27,993.3 points. The market breadth S&P 500 increased by 1.27 percent to 3383.5 points. For the tech-savvy Nasdaq 100 it went up 1.72 percent to 11 277.7 points.
News from vaccine developers provided a boost: On the one hand, took Astrazeneca after an interruption the examination of his candidate again, on the other hand widened Pfizer and the Mainz partner Biontech their study on approximately 44,000 subjects. "Markets are becoming increasingly confident that we are moving towards a safe and effective vaccine, possibly by the end of 2020 but otherwise by the beginning of 2021," said Quincy Krosby, chief strategist at Prudential Financial. Pfizer's shares rose 2.6 percent and Biontech's 3.6 percent. In Frankfurt they went out of the market a good eight percent more firmly. ยด
With a premium of 4.3 percent, the Oracle stocks acted. The software company prevailed in the race for the US business of the short video service Tiktok. He agreed a partnership with the Chinese technology group Bytedance and thus outperformed rivals Microsoft and Walmart. Several billion offers also gave rise to speculation about a wave of mergers. The Japanese technology investor Softbank is selling the chip designer ARM for 40 billion dollars to the graphics chip specialist Nvidia – that would be the largest merger in the industry to date.
Nvidia would become one of the world's leading chip companies. However, analysts pointed out that the merger is likely to raise questions from regulators: "Even if Nvidia succeeded in gaining approval from the authorities in China to acquire Mellanox, the size and importance of this possible merger should attract increased attention," wrote Morningstar analyst Abhinav Davuluri. Nvidia shares were 5.8 percent higher from trading.
Also shares in the pharmaceutical company Gilead were in demand and were listed 2.2 percent higher. The company plans to acquire the biotech company Immunomedics for $ 21 billion to expand its cancer business. The purchase price is not a bargain, said Elmar Kraus, an expert at DZ Bank. However, this will significantly expand the oncology pillar. The immunomedics course roughly doubled.
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