NEW YORK (dpa-AFX) – After the holiday on Monday, the US stock market started the shortened week well recovered. The Dow Jones Industrial regained the round mark of 30,000 points in early trading on Tuesday and was last listed 1.92 percent higher at 30,462 points. The market-wide S&P 500 gained 2.4 percent to 3763 points. The tech-heavy Nasdaq 100 increased by 2.7 percent to 11,564 points.
Concerns about the economy due to high inflation and the resulting need for a quick turnaround in interest rates pushed the leading US index down almost 5 percent last week to its lowest level since the end of 2020. The week before, the loss had been almost as high. For many market participants, however, the recent sell-off seems to have gone too far, as evidenced by the rises on some Asian and European stock exchanges. The mood is supported by statements by President Joe Biden that a recession in the USA is not “inevitable”.
Stockbrokers warn, however, that this could only be an interim recovery in a longer downtrend on the stock exchanges.
Fresh data from the important US real estate market had little impact on the indices. Existing home sales fell 3.4 percent in May. It was the fourth straight decline. However, analysts had expected a slightly stronger decline. The real estate market is under pressure because, on the one hand, rising interest rates are making it more expensive to finance apartments and houses, and on the other hand, sales prices are threatening to collapse if demand falls.
From an industry perspective, energy stocks were at the top of investor favourites. They benefited from significantly higher oil prices. Chevron shares were accordingly with a plus of 4.2 percent far ahead in the Dow. ExxonMobil titles
increased by 6.4 percent.
The electric car manufacturer Tesla will cut 3 to 3.5 percent of its jobs in the coming months. This was made clear by company boss Elon Musk on Tuesday after conflicting reports. The tech billionaire reiterated that he expects a recession in the US in the near future. Tesla shares soared 11.5 percent.
Food manufacturer Kellogg came forward with news of a split into three listed companies
in the gaze. The international snack and cereal business with well-known brands such as Kellogg’s, Frosties and Pringles will form the core in the future. The announcement drove the papers up 2.7 percent.
In the struggle for a takeover of the airline Spirit
by Jetblue seems no end in sight. Jetblue has now improved the offer again to make it Frontier Airlines to outdo. Spirit’s shares gained 8.2 percent while Jetblue’s shares fell 1.4 percent.
Davita shares fell by more than 15 percent. The dialysis provider has suffered a defeat before the US Supreme Court in a dispute over the amount of reimbursements for certain dialysis patients. A majority of the nine judges of the US Supreme Court sided with a hospital in Ohio in the dispute over the design of company health insurance and thus opposed Davita./edh/mis
ISIN US2605661048 US6311011026 US78378X1072
AXC0331 2022-06-21/20:12
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