NEW YORK (dpa-AFX) – The share prices on Wall Street made a stabilization attempt on Tuesday after a weak start to the year. However, the initial profits melted quickly – the Dow Jones Industrial even slipped briefly into the red. Most recently, however, the US benchmark index was again 0.10 percent firmer at 30,255.47 points.
The market-wide S&P 500 claimed an increase of 0.26 percent to 3710.30 points and the technology-heavy Nasdaq 100 gained 0.50 percent to 12,758.74 points. On Monday, all three indices had already set records at the beginning, but then closed with clear losses.
The already high valuations and the reluctance of investors on the day of the important runoff elections for the US Senate in Georgia also set limits on the willingness to buy on Tuesday. Strongly unusual sentiment data from industry did not provide any positive impulses either.
The result of the votes in Georgia will determine whether the Republicans can defend their majority in the Senate or whether the Democrats will also dominate the second chamber of parliament in addition to the House of Representatives. Polling stations close at 7:00 p.m. local time, after the closing bell on Wall Street. US observers expected close races. It was initially unclear when there would be reliable results. According to analysts at the investment management company T. Rowe Price, the election result could be decisive for the size of the next economic stimulus program and thus the recovery of the coronavirus-strained US economy.
With control of the Senate, the future President Joe Biden could rule – provided the Democrats pull together on bills or appointments of government officials. In this case, investors expect higher fiscal incentives to stimulate the economy, but also higher taxes and more regulation. But if the Republicans manage to win at least one of the two seats, they can block any initiative by Biden – starting with the nomination of his cabinet.
Qualcomm’s titles rose by a good two percent after a change in leadership became known. At the chip company, an expert in super-fast 5G data radio takes over the chief position. Christiano Amon replaces Steve Mollenkopf, who had successfully brought the company through a series of legal turmoil
Otherwise, analyst comments caused price fluctuations. The shares of the Dow leader Boeing gained almost two and a half percent, making up for part of the previous day’s loss. At the beginning of the week, a sales recommendation from the analysis company Bernstein weighed on it, but now UBS has given support. The Swiss confirmed their vote to buy the aircraft manufacturer’s title. Thanks to Citigroup, which now advises buying instead of selling, paper from the semiconductor manufacturer Micron Technology went up by almost five and a half percent.
In contrast, shares in the solar group First Solar lost almost eight percent. The bank Goldman Sachs took their buy recommendation and is now recommending a sale./gl/he
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