NEW YORK (awp international) – The US stock exchanges could not escape the global market weakness on Thursday. Due to ongoing concerns about the global economic recovery, the Dow Jones Industrial went 0.75 percent lower at 34 421.93 points. Previously, the courses in Europe and Asia had come under heavy pressure in some cases. However, the Dow managed to roughly halve its minus over the course of the year.
The other major New York indices broke their recent record rally. The market-wide S&P 500 fell by 0.86 percent to 4,320.82 points and the technology-heavy Nasdaq 100 fell by 0.60 percent to 14,722.14 points. Both were able to reduce their haircuts, however, the Nasdaq index had lost a good 1.7 percent in the low.
Due to the particularly contagious Delta variant, investors around the world currently fear that the rising number of corona infections will pose a threat to the economic recovery. This was reflected in the continued fall in capital market rates on Thursday. The yield on ten-year government bonds fell over the course of 1.25 percent to its lowest level in five months.
Market watcher Edward Moya from broker Oanda also made investors’ worries about the fact that a decision was made to ban all viewers from the Olympic Games in Japan’s capital, Tokyo. He sees the markets now facing a further test of the “buy the dip” mentality, that is, rapid access by investors in the event of price declines.
In the Dow, it was some stocks from defensive sectors such as healthcare and retail that did well. The papers of the pharmaceutical company Amgen and the sporting goods company Nike were exceptions with moderate profits. Those of the supermarket chain Walmart closed just below their previous day’s level.
However, Boeing advanced to the front-runner in the leading index in late trading with a plus of 2.2 percent. The aircraft manufacturer can hope for a re-registration of the 737 Max in China. The authorities have signaled that they are open to test flights with the passenger jet, reported the Bloomberg news agency on Thursday, citing circles. However, it can still take months for a re-admission.
On the other side of the Dow, banks appeared at bigger discounts: JPMorgan and Goldman Sachs fell 1.7 and 2.4 percent, respectively. This was justified with the current situation on the bond market with sharply falling yields.
After the last strong run, the shares of Apple shied away from an attack on the previous 145 dollar record. After an increase of almost 18 percent since the beginning of June, they lost 0.9 percent on Thursday.
The latest slide in the shares of Chinese companies listed on the US stock exchange continued unabated after the Chinese government announced significantly tighter controls on them the day before. The shares of the newly listed transport agent Didi in New York fell by 5.9 percent. This was followed by Alibaba down 3.9 percent.
A positive outlier among the small caps were the shares of Virgin Galactic with a price jump of 17 percent. Company founder Richard Branson wants to get into one of the company’s space planes himself for a test flight at the weekend. The British billionaire wants to offer commercial space flights with his company.
The euro recovered during the day from its lowest level since the beginning of April, which was below the US $ 1.18 mark. Most recently, the common currency cost $ 1.1846. The European Central Bank (ECB) set the reference rate at 1.1838 (Wednesday: 1.1831) dollars. The dollar cost 0.8447 (0.8452) euros.
The yield on ten-year US Treasuries fell 1.25 percent to its lowest level since February. In the end it was then again 1.29 percent. In return, prices rose: The futures contract for ten-year Treasuries climbed 0.22 percent to 133.84 points./tih/mis
— By Timo Hausdorf, dpa-AFX —
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