After pleasing US economic data and positive signals from Asia, the willingness to take risks on the New York stock market increased noticeably on Tuesday. Did the indices…
NEW YORK (dpa-AFX) – After pleasing US economic data and positive signals from Asia, the willingness to take risks on the New York stock market increased noticeably on Tuesday. If the indices had been struggling at the beginning of the week in the face of persistent growth concerns, they are now advancing.
The Dow Jones Industrial (Dow Jones 30 Industrial) gained 1.34 percent to 32,654.59 points. Since its lowest level since March 2021, which was reached last week, the leading index has now risen by 4.6 percent. The S&P 500 as a market-wide index advanced by 2.02 percent to 4088.85 points on the second trading day of the week.
The technology-heavy NASDAQ 100, which fell well below the 12,000 point mark for the first time since November 2020 in the previous week, made even more significant progress with a plus of 2.62 percent to 12,564.10 points.
In Asia, hopes grew that the corona lockdown in Shanghai could be relaxed. No new infections were reported in the Chinese metropolis for the third day in a row, which is a condition for easing the strict virus measures. The tough measures to contain the virus are considered one reason for the global supply chain problems that are threatening growth.
Good news also came from the USA: Consumption in the world’s largest economy shows no signs of weakness. Retail sales rose again in April. In addition, US industry increased its production again in April and also more significantly than analysts had calculated. The gain follows solid gains in previous months. The analysts at Capital Economics explained that it underscores that it is not just consumer spending that is driving the US economy.
Walmart investors, on the other hand, had to cope with bad news. The largest US retailer groans under high costs amid inflationary pressures and supply chain issues. After a significant drop in profits in the first quarter, the shopping giant cut its annual targets. The share price fell to its lowest level since March 2021. In the Dow, the stocks were by far the weakest value and posted their biggest daily loss since 1987 at minus 11.4 percent.
The DIY group Home Depot did better than Walmart and is more optimistic about the year as a whole after a successful first quarter. The papers rose by 1.7 percent. JPMorgan analyst Christopher Horvers spoke of very strong results that, together with the outlook, significantly exceeded his previously pessimistic assumptions.
A stake in Citigroup by Warren Buffett’s investment firm Berkshire Hathaway sent the bank’s shares up 7.6 percent. Berkshire relies on the new management.
After losing 17 percent in two trading days, shares of Twitter tried to stabilize with a gain of 2.5 percent. The tech billionaire and Tesla boss Elon Musk bites the announced purchase of the short message service on his accusation that the service has many more fake accounts than stated. It remains unclear whether he wants to push the price down – or is trying to prepare the ground for an exit from the business.
Shares of US-listed Chinese tech companies were boosted by the prospect of regulatory relaxation. The papers of the Internet companies Alibaba and Tencent, the search engine operator Baidu and the e-commerce platform operator JD.com (JDcom) gained between a good three and a half and more than six percent. JD.com also surprised positively with its net sales in the first quarter.
The euro rose. After the New York market close, investors paid $1.0545 for the common currency. The European Central Bank (ECB) had previously set the reference rate at 1.0541 (Monday: 1.0422) dollars, so the dollar had cost 0.9487 (0.9595) euros.
On the bond market, the futures contract for ten-year Treasuries (T-Note Future) widened its losses by 0.77 percent to 118.75 points. In return, the yield on ten-year bonds rose to 2.98 percent./ajx/he
— By Achim Jüngling, dpa-AFX —
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