indexes in this article
NEW YORK (dpa-AFX) – US stock markets closed on Friday with significant gains at floating rates. The leading Dow Jones Industrial index (Dow Jones 30 Industrial) finally climbed 1.05 percent to 31,097.26 points on the last trading day ahead of the extended weekend. On a weekly basis, it is still a loss of 1.3%. There will be no trading on the New York Stock Exchange on Monday due to US Independence Day.
The general-market S&P 500 index rose 1.06 percent to 3,825.33 points on Friday. The tech-savvy NASDAQ 100 gained 0.71 percent to 11,585.68 points, but fell 4.3 percent over the week.
The day before, three stock barometers left trading with historically high discounts in the first half of the year. Many investors around the world have recently lost interest in equities amid rising interest rates and fears of an impending recession.
Some investors can count on improvement now. John Higgins, chief markets economist at the economic consultancy firm Capital Economics, was skeptical. After the drought in the first half of the year, the expert wrote in a recent publication that he did not expect a positive development in prices on Wall Street and the US bond market also in the second half of the year. Because the US Federal Reserve is likely to raise interest rates more and then keep them at that level longer than is currently valued.
Due to growing fears of a recession, the market has also started to assess the impact on companies’ earnings prospects, commented expert Stephen Innes of Spi Asset Management. The current data from the world’s largest economy turned out to be moderate.
Industrial sentiment fell more than expected in June to its lowest level in two years, the Supply Management Institute (ISM) purchasing managers index shows. The sentiment indicator, which is used as a measure of overall economic growth, is still well above the 50-point growth threshold. Meanwhile, signs of a weakening in the US housing market persist: construction spending in May fell slightly month on month, while analysts expected an increase.
Semiconductor manufacturer Micron is suffering from weaker demand. According to Brsians, sales forecasts for the last quarter, which were released after Thursday’s market, were disappointing. Shares fell by almost 3 percent. Equivalents from the AMD industry (AMD (Advanced Micro Devices)), NVIDIA and Texas Instruments also suffered, as evidenced by losses from 3.3 to 4.2 percent.
Meanwhile, the Kohl department store chain (Kohls) made a sensation – it announced the end of takeover talks by the Franchise Group (Franchise Group A). After three weeks of exclusive negotiation, management identified difficult financing and retail conditions as obstacles to reaching an acceptable deal with the prospective buyer. Many disappointed investors fled the title, which had been under tremendous pressure for weeks anyway – after all, it was minus almost 20%. The prospective buyer’s papers fell by seven and a half percent.
Meanwhile, General Motors (GM) shares rose by nearly 1.5 percent, despite the auto maker suffering a significant drop in sales in the second quarter. The group continues to face supply chain problems and a persistent shortage of computer chips. Additionally, the forecast for the quarterly profit differed significantly from the consensus.
The euro recovered in line with the soft US stock markets and was recently traded at $ 1.0432 on the New York Stock Exchange. The rate was above the reference rate of 1.0425 (Thursday: 1.0387) of the US dollar, previously set by the European Central Bank.
Investor interest in perceived safe US government bonds continued: the T-Note Future rose on the last trading day of the week, when trading ended early at 20:00 CET. (CEST), by 0.79 percent up to 119.47 points In return, the yield on ten-year government bonds fell to 2.89 percent. – at times it reached the lowest level in a month
— Gerold Lhle, dpa-AFX —