Investors on the US stock exchanges regained their courage on Monday. The most important indices increased significantly after the weak previous week. The environment for equities is viewed as robust, although the US Federal Reserve’s interest rate policy is causing uncertainty. The latest economic data point to a slow weakening of the economy.
NEW YORK (dpa-AFX) – Investors on the US stock exchanges regained their courage on Monday. After the weak previous week, the most important indices increased significantly. According to observers, the environment for shares is still quite robust, even if the interest rate policy of the US Federal Reserve is still causing uncertainty in the background. The latest economic data pointed to an economy that is slowing down only very slowly, said analyst Paul Nolte of wealth manager Murphy & Sylvest Wealth Management.
The Dow Jones Industrial rose 1.16 percent to 35,473.13 points. The market-wide S&P 500 gained 0.90 percent to 4518.44 points. The technology-heavy selection index Nasdaq 100 went up 0.87 percent to 15,407.85 points.
Meanwhile, investors are hoping Thursday’s consumer prices and Friday’s producer prices will give more clues as to whether the Fed will hike interest rates further to get inflation under control. On Monday, a Fed member brought further interest rate hikes into play. According to the text of the speech, Fed Governor Michelle Bowman reiterated at an event that a further increase in key interest rates would probably be necessary to bring inflation back to the target of two percent. The central bank last raised the key interest rate by 0.25 percentage points in July, but left the further interest rate policy open.
Among the individual stocks, the shares of Campbell Soup and Sovos Brands were in focus. Both food manufacturers announced that Campbell would acquire Sovos for $2.7 billion in cash. Sovos stocks gained a quarter while Campbell stocks fell 1.8 percent.
At the Mainz-based vaccine manufacturer Biontech, the significantly lower business with Covid 19 vaccines had a strong impact on the balance sheet. Biontech shares traded in the US lost 7.5 percent.
The papers of the competitor Moderna, which also produces corona vaccines, fell into the wake of Biontech and fell by 6.5 percent as the bottom of the S&P 500. A skeptical analyst comment from SVB Financial added to the burden. Without a significant recovery in Covid vaccine demand, the company is a likely candidate for restructuring, wrote expert Mani Foroohar.
The financial investor KKR had reported a net profit for the second quarter after a loss a year ago. In addition, KKR wants to buy around 30 percent of the freely tradable shares in the Bremen-based space company OHB at a price of EUR 44 per share. KKR shares rose 2.7 percent. OHB shares had soared by 31.5 percent to EUR 42.35 by the end of trading in Frankfurt.
After surprisingly positive quarterly figures, shares in Berkshire Hathaway, the holding company of well-known investor Warren Buffett, climbed to a record high and ended up gaining 3.6 percent. The strength of the insurance business had helped counter inflationary pressures.
The euro was last traded at $1.1001. The European Central Bank had set the reference rate at 1.0984 (Friday: 1.0946) dollars. The dollar thus cost 0.9104 (0.9136) euros.
On the US bond market, the futures contract for ten-year government bonds (T-Note Future) fell 0.11 percent to 111.02 points. In return, the yield on ten-year bonds rose to 4.10 percent./la/he
— By Lutz Alexander, dpa-AFX —
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