NEW YORK (awp international) – Wall Street also benefited on Thursday from the unchanged US monetary policy for the time being. The leading index Dow Jones Industrial significantly expanded its previous day’s profits and rose by 1.77 percent to 34,864.70 points. For the broader S&P 500, it went up 1.54 percent to 4463.45 points. The technology-heavy Nasdaq 100 gained 1.15 percent to 15 351.56 points.
The day before, in late trading, investors reacted with relief to the news that the US Federal Reserve (Fed) is sticking to its very loose monetary policy for the time being: The key interest rate will remain low and the purchases of securities to support the economy will continue. However, at the next meeting in early November, a decision could be made to curb monthly bond purchases from the current $ 120 billion, said Fed Chairman Jerome Powell. At the same time, new forecasts point to an interest rate hike in the coming year.
The US Federal Reserve has taught another lesson “how to gently massage the markets to accept that a tightening is imminent,” wrote analyst Neil Wilson of the trading house Markets.com.
Since Powell’s announcement in August, market participants have been waiting for a concrete timetable for the planned reduction in bond purchases, noted DZ Bank analyst Birgit Henseler. This wish was not fulfilled. “Ultimately, it is only clear what was already known: bond purchases will be reduced at some point, but you do not know when and at what speed.”
Fresh US economic data urge caution: Initial jobless claims – a leading indicator for the job market – rose again last week. The labor market currently plays a very important role in the monetary policy of the US Federal Reserve.
With a view to the individual values, the software company Salesforce is currently catching up with its German competitor SAP after taking over the office messenger Slack. In this respect, Salesforce moderately raised the sales forecast for the current fiscal year. Shares soared around seven percent, taking them to the top of the Dow.
The FDA approved corona booster vaccinations with the drug from Biontech and Pfizer for the elderly and risk groups. The papers from Biontech rose by a good five percent, those from Pfizer rose by around one percent.
Dell Technologies announced a share buyback program as well as the payment of a dividend starting in the first fiscal quarter of 2023. The PC manufacturer also announced long-term business goals. Here, the shareholders were able to look forward to a price increase of a good four percent, after the shares had reached a record high in the meantime./la/jha/
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