NEW YORK (dpa-AFX) – Led by the technology stocks, the US stock exchanges rose sharply on Friday and thus also gained significantly on a weekly basis. The tech-heavy and interest rate-sensitive Nasdaq 100 rose by 2.06 percent to 13,565.87 points. The leading index Dow Jones Industrial increased by 1.27 percent to 33,761.05 points. For the market-wide S&P 500
it went up by 1.73 percent to 4280.15 points.
The weekly result is very strong with the Nasdaq 100 up 2.7 percent, the Dow up 2.9 percent and the S&P 500 up 3.3 percent. The rally has been running since mid-June. The main driver is the hope that the US Federal Reserve will control its monetary policy with interest rate increases that are not quite as large as to avoid a severe slowdown in the economy. The Nasdaq 100 alone has recovered by around 23 percent since its June low at 11,037 points and reached its highest level since the end of April at the end of trading on Friday.
For the analyst Konstantin Oldenburger from the broker CMC Markets this is also reason to warn: “The courageous comeback of the technology stocks in the past two months has already pushed up the previously fallen valuations compared to the overall market, which could endanger the bull market, the Fed shouldn’t take their foot off the brake pedal when interest rates are turned around.”
In the middle of the week, falling inflation in the USA had fueled hopes that the Fed might not be able to raise interest rates quite as much in the near future. However, Mary Daly, San Francisco Fed Chair, said inflation is still too high and monetary policy is likely to remain tight in the coming year. For Daly, another large rate hike of 0.75 percentage points in September is quite conceivable./ajx/he
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