Financials rebounded Tuesday from the turmoil that sparked speculation the previous day about troubles at the Archegos hedge fund. However, this was offset by weak technology stocks, among other things. The Nasdaq 100, which is shaped by this sector, fell slightly more by 0.53 percent to 12 896.53 points. The market-wide S&P 500 fell 0.32 percent to 3958.55 meters.
At up to 1.77 percent, ten-year bonds on Tuesday yielded the highest yield since January 2020. The reasons for the rise in interest rates were further cited as an economic recovery supported by stimulus injections and fears of rising inflation. Pressure on bond prices was also exerted by the US government’s targeted infrastructure package worth billions of euros, it said.
Technology companies focused on growth are seen as particularly suffering from higher market rates. With this in mind, some tech stocks included in the Dow rallied among the losers in the benchmark index. The shares of Microsoft, Intel and Apple lost between 1.1 and 1.4 percent.
The progress made in the US vaccination campaign is also an important element of economic optimism. According to President Joe Biden’s announcement, 90 percent of adults will be eligible for the vaccination in three weeks. It fits in with the fact that vaccine pioneers Biontech and Pfizer announced an expansion of their production capacity on Monday. The two partners now want to produce 2.5 billion cans by the end of this year.
The plans became a support for Biontech in a generally weak environment in the pharmaceutical industry. The depository receipts of the German company traded in New York rose by 8.9 percent and thus stood out positively from the generally weak pharmaceutical sector. Conversely, the papers of competitor Moderna were down four percent and Pfizer shares could not benefit from the news, they fell 1.4 percent.
Recovered financials were not enough to support the overall market: Goldman Sachs and JPMorgan stocks were up in the Dow with gains of 1.9 and 1.2 percent, respectively. On the market it was said that the Archegos speculations had largely been ticked off the day before. Market strategist Stephen Innes from broker Axi spoke of a storm in a glass of water. According to experts, the recovery in the banking industry was also helped by rising US bond yields.
The recovery was also evident in some stocks where Archegos was recently reported to have had to rapidly reduce its positions. These included, for example, the shares of the media groups ViacomCBS and Discovery, whose prices had more than halved within a few days. Now they have recovered by up to 5.4 percent.
The weakness of the euro continued. In the low, the common currency cost 1.1712 US dollars, the lowest it has since the beginning of November. Most recently, $ 1.1718 was paid. The European Central Bank (ECB) had set the reference rate at 1.1741 (Monday: 1.1784) dollars. The dollar cost 0.8517 (0.8486) euros.
On the US bond market, the futures contract for ten-year Treasuries (T-Note Future) fell 0.11 percent to 131.24 points. The yield on ten-year government bonds, which rose to 1.77 percent at the top, was at last 1.72 percent./tih/he
— By Timo Hausdorf, dpa-AFX —
(AWP)
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