NEW YORK (awp international) – The US stock exchanges continued their recovery course from the previous day with momentum. However, the partly strong profits crumbled somewhat towards the end of trading. The weekly labor market data released prior to the start of trading on Thursday was very robust. Most of all, there was relief that a temporary deal had been reached in the dispute between Democrats and Republicans over the debt ceiling. The impending default by the US government with potentially catastrophic economic consequences should thus have been averted for the time being.
The Dow Jones Industrial closed with an increase of 0.98 percent to 34,754.94 points, so that the losses of the past week and a half were made up. The S&P 500 rose 0.83 percent to 4399.76 points. For the technology-heavy Nasdaq 100 it went up 0.88 percent to 14 897.13 points.
On Wednesday, the US stock exchanges managed to stop their initially quite steep decline and finally turn the early losses into profits. It was triggered by statements by Russian President Vladimir Putin and the leading Republican in the US Senate, Mitch McConnell. Putin wants to help stabilize the energy markets through gas deliveries, which would also indirectly reduce the demand for crude oil. McConnell had proposed to the Democrats, among other things, not to block an emergency hike in the debt ceiling until December, which was then agreed on Thursday. The risk of default by the world’s largest economy thus seems to have been averted for the time being.
On the data side, the weekly initial jobless claims were convincing and surprisingly fell significantly. The government’s labor market report for September will be released this Friday. It is considered an important indicator for the further monetary policy of the central bank, which is feared that it could raise interest rates faster than the stockbrokers would like.
On the company side, the papers of corona vaccine manufacturers came into focus, which had clearly left feathers in the past eight weeks. Biontech gained 4.4 percent and Pfizer 1.7 percent. The two partners submitted an application for emergency approval for their corona vaccine for children aged five to eleven. The papers of competitor Moderna gained 2.3 percent. The biotech company announced that it will invest half a billion US dollars to build a vaccine production facility in Africa.
With a plus of 8.5 percent, Levi Strauss’ shares were also in demand after the jeans manufacturer had published quarterly figures on Wednesday and raised the annual outlook. The shares of the oil field service provider Schlumberger benefited with plus 3.6 percent from a buy recommendation by the bank JPMorgan.
The euro was $ 1.1554 at the close of trading on Wall Street, after falling to a 15-month low at $ 1.1529 the previous day. The European Central Bank set the reference rate on Thursday at 1.1562 (Wednesday: 1.1542) dollars. The dollar cost 0.8649 (0.8664) euros. On the US bond market, the futures contract for ten-year Treasuries (T-Note-Future) fell by 0.25 percent to 131.38 points. Ten-year paper yielded 1.57 percent, again at its highest level in almost four months./ck/he
— By Claudia Müller, dpa-AFX —