ROUNDUP / Stocks New York Closing: Strong tech stocks continue to drive growth | News

NEW YORK (dpa-AFX) – US stock markets, driven by tech stocks, surged sharply on Friday and therefore also gained significantly on a weekly basis. The tech-laden and interest-sensitive NASDAQ 100 index rose 2.06 percent to 13,565.87 points. The leading Dow Jones Industrial index (Dow Jones 30 Industrial) rose 1.27 percent to 33,761.05 points. The market-wide S&P 500 index rose 1.73 percent to 4,280.15 points.

The weekly result is very good: the Nasdaq 100 grew by 2.7 percent, the Dow by 2.9 percent and the S&P 500 by 3.3 percent. The rally runs from mid-June. The main driving force is the hope that the US Federal Reserve Monetary policy with interest rate increases that are not so large as to avoid a severe economic slump. The Nasdaq 100 alone recovered some 23 percent from the June low of 11,037 points and reached its highest level since the end of April at the end of Friday’s trading.

For analyst Konstantin Oldenburger of the CMC Markets broker, this is also a reason to warn: “The bold return of tech stocks in the last two months has already raised previously falling valuations compared to the overall market, which could threaten the bull market, the Fed should not take the foot off the brake pedal when interest rates change ”.

In the middle of the week, falling inflation in the US raised hopes that the Fed may not be able to raise interest rates to such an extent in the near future. However, Mary Daly, chairman of the San Francisco Fed, said inflation was still too high and that monetary policy was likely to remain tight in the coming year. For Daly, another large interest rate hike of 0.75 percentage points is possible in September.

Nevertheless: US import prices gave a signal of easing on Friday. In July, they fell by 1.4 percent. compared to the previous month, more than expected by experts. The consumer climate at the University of Michigan also surprised positively.

In the tech sector, Apple has provided continued confidence by commenting on the production of the iPhone. According to the company, this year there should be at least as many new-generation iPhones as last year. Apple relies on well-to-do customers and declining competition to survive the global crisis in the electronics industry.

Apple shares rose 2.1 percent. With growth of a good one-third since mid-June, Apple has clearly beaten the strong Nasdaq indices. With the Friday closing rate of $ 172.10, it is close to the record high of about $ 183 at the start of the year. Other tech giants such as Tesla, Micron (Microchip Technology) and NVIDIA also saw surge on Friday, each more than four percent.

Shares of the Walt Disney entertainment group conquered the first place in the Dow ranking for the third day in a row, gaining 3.3% on Friday. Strong quarterly data gave an impulse this week.

Fitness equipment specialist Peloton (Peloton Interactive) announced a drastic cut that includes nearly 800 job cuts and increases in the price of bicycles and other equipment. Peloton also wants to outsource the delivery of equipment and customer service to other companies. During the pandemic, stocks were among the best on the stock exchange. After a record high of $ 171 in early 2021, it dropped to almost $ 8 in July. On Friday, newspapers closed 13.6 percent. above, reaching $ 13.53.

Illumina (Illumina) recorded a loss of 8.4 percent. A gene sequencing specialist confronted investors with poor quarterly data and a canceled forecast.

Electric car maker Rivian (Rivian Automotive) exceeded market expectations with quarterly sales and confirmed its delivery targets. However, the company lowered its full-year profit forecast as supply chain problems, high costs and economic uncertainty continued to weigh on it. The shares ended slightly lower.

The euro was under pressure. After the US market closed, USD 1.0257 was paid for the single European currency. Improved consumer confidence in the US supported the dollar. In the morning trade in Europe, the euro was still above USD 1.03. The European Central Bank (ECB) set the reference rate at 1.0285 (Thursday: 1.0338) dollars, so the dollar was worth 0.9722 (0.9673) euros.

US Treasury bond prices rebounded slightly after sharp declines from the previous day. The T-Note Future recently rose 0.21 percent to 119.34 points. In return, the yield on ten-year government bonds fell to 2.84% /ajx/he

— Author: Achim Jungling, dpa-AFX —

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