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So far, August has been a turbulent month for Wall Street. A rebound was expected in pre-trade, and at the stock market opening the arrows pointed upwards on all three key indices.
It would turn out to be a particularly strong day for the technology sector on Wall Street. This is what it looked like on the three key indices at 22:00 Norwegian time:
The broad S&P 500 index rose 0.6 percent The industrial index Dow Jones fell 0.1 percent The technology index Nasdaq rose 1.5 percent
Last week ended weak for US shares after renewed interest rate fears in the market. The key indices fell steadily for four days in a row. On Monday, there was optimism to be found, at least for the technology sector.
The technology upswing increased in strength throughout the evening, well led by the giants Nvidia and Tesla, which rose 8.5 per cent and 7.3 per cent respectively.
The former presents results on Wednesday this week, and there is great excitement about how things have gone with the American computer chip manufacturer. The share price rose as a result of several brokerage houses having adjusted their price target ahead of the figures release.
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Highest level in 16 years
Recently, the “long” US government interest rates, i.e. the interest on US government bonds with longer maturities, have risen sharply.
Ten-year US bond yields, often referred to as the world’s most important interest rate, have now touched their highest level in 16 years. On Monday, the interest rate rises to 4.3 per cent. Interest rates only started to rise on Wednesday last week when the US central bank published the interest rate report after the interest rate meeting in July. Both the stock markets in the US and the rest of the world fell immediately.
This interest rate affects almost all interest rates worldwide, including the interest rate set by Norges Bank, and is therefore also important for nervous Norwegian loan customers.
The economists at Handelsbanken write in Monday’s morning report that the reason behind the sharp increase in interest rates is driven by an increase in the real interest rate, which has now risen to close to two percent.
– There are several reasons for this rise, but an important element is that strong US key figures continue to flow in. Which may indicate that the period of high underlying price growth will continue, it says.
Powell-tale
On Thursday this week, investors will turn their eyes to Jackson Hole, where the US central bank will hold a summit with other central banks. The annual economic summit takes place in Wyoming, where leading central bank governors, economists and government officials will discuss monetary policy.
The meeting starts on Thursday and ends on Saturday.
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The high interest rates and inflation, which have taken hold harder than both economists and the market had expected, are the main theme. The highlight will be Friday’s speech from central bank chief Jerome Powell, which could potentially be decisive for the markets. At the same time, European Central Bank Governor Christine Lagarde will also give a speech on Friday.
That is why Stordalen never moves to Switzerland
Hotel owner Petter Stordalen in debate with Finance Minister Trygve Slagsvold Vedum during Arendal Week 2023: – It is Norway that has given me the opportunity to build what I have built.
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Published: 21.08.23 — 10:17
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2023-08-21 18:51:54
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