NEW YORK (dpa-AFX) – On Wall Street, the pessimists regained the upper hand on Thursday. After the price rises in the middle of the week, some of the most important stock indices fell significantly.
The US leading index Dow Jones Industrial (Dow Jones 30 Industrial) lost 0.40 percent to 31,835.52 points after climbing above 32,000 points for the first time on Wednesday. The market-wide S&P 500 fell 0.80 percent to 3894.21 points and the technology-heavy NASDAQ 100 dropped 1.33 percent to 13,125.25 points. Tech stocks had risen above average in the past few months, now investors continued to cash in.
The rising yields on the bond markets for fear of rising inflation depressed investor sentiment, commented analyst Craig Erlam from broker Oanda Europe. The price gains posted the previous day faded again, triggered by soothing statements by Fed Chairman Jerome Powell on monetary policy and positive vaccine news from Johnson & Johnson (JohnsonJohnson). Investors are more and more convinced that inflation is increasing and causing the central bank to tighten its monetary policy, explained Erlam.
The rise in capital market rates does not seem to be stopping at the moment. Even soothing words from central bankers do not help much. This week, US central bank chief Jerome Powell gave clear indications that the central bank wants to continue its ultra-loose monetary policy for a long time. It didn’t help, interest rates on the markets continued to rise. The interest rate for ten-year government bonds climbed towards 1.5 percent.
Among the biggest losers in the technology sector, NVIDIA’s shares slipped by around four percent. A high demand for technology for data centers and graphics cards caused the chip manufacturer’s sales and profits to jump further in the past quarter. During the conference call on the business figures, however, CFO Colette Kress said that the growth is currently the result of the computer games business. Some analysts therefore feared that this could mean that the data center division is expanding a little more slowly.
The Telekom subsidiary T-Mobile US (T-Mobile (ex T-Mobile US)) secured 142 licenses for 9.3 billion US dollars at a frequency auction in the USA with a view to the planned network expansion of the new 5G mobile communications standard. Compared to its competitors, T-Mobile US did not have to dig deep into its pockets. One of the reasons for this is that the frequency configuration of the Deutsche Telekom subsidiary (Deutsche Telekom) was already considered good. T-Mobile US gained almost two percent, AT&T and Verizon each fell by almost one percent.
The shares of Twitter soared to a record high and were most recently around ten percent in plus. The short message service aims to double its annual turnover by the end of 2023.
The vaccine manufacturer Moderna was keeping high research and development costs in the red at the end of 2020, but the strong demand for the corona vaccine is causing sales to explode. The papers rose by around five percent.
After all, the excitement surrounding the video game retailer GameStop never ends. After the shares were temporarily suspended from trading on Wednesday and closed with a plus of 104 percent, it now went up another 40 percent. The vice chairman of Warren Buffett’s investment company Berkshire Hathaway, Charlie Munger, sees the price volatility with great concern. They are signs of an “irritating bubble” that has to come to a bad end at some point. / La / he
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