The rally on the US stock market, which resumed on Tuesday at the start of the stock market, was dampened in trading.
After further signals of a downward trend in inflationary pressure had given Wall Street noticeable tailwind, profit-taking set in later on. The Dow Jones Industrial, which had at times clearly approached the 34,000 point mark, temporarily turned into the red, but was ultimately able to salvage a small plus at the end of the day. Some of the other indices rose significantly.
There is relief that the rise in prices at the manufacturer level in October weakened for the fourth time in a row and also more clearly than expected. The fact that the mood in industry in the New York economic area brightened up surprisingly in November was also well received. However, according to market experts, this is already quite clearly reflected in the stock market recovery that has already taken place. It also pointed out that some short-term investors had already cashed in on Monday in response to the recent rally.
The Dow Jones ended the day up 0.17 percent to 33,592.92 points. The market-wide S
The US stock market rally picked up momentum last Thursday, also after data was released that high inflationary pressures in the US were easing. At least the price data for consumers and manufacturers underpins the hope that the worst is over in terms of inflation and that the US Federal Reserve could be less aggressive in further interest rate hikes.
As a result, the Dow Jones has risen by a little more than three percent since the consumer prices for October were announced. Since the most recent low in mid-October, it has even risen by around 18.5 percent. However, the tech stocks received a particularly strong boost from the inflation signals. They had so far lagged behind the broad market recovery and had previously fallen particularly sharply. However, as of last Thursday, gains in the Nasdaq 100 selection index are nearly 10 percent.
Technology stocks probably received a further boost this Tuesday, also because the well-known investor Warren Buffett used the falling prices on the stock exchanges for acquisitions in this area in the past quarter. With his investment fund Berkshire Hathaway, he invested several billion dollars in the stock market, according to a report to the US Securities and Exchange Commission. Among other things, Berkshire reacted to the fall in the price of the world’s largest chip order manufacturer Taiwan Semiconductors (TSMC) with purchases.
Among the individual stocks on the US stock exchange, the shopping giant Walmart impressed with business figures for the past quarter, a higher annual sales target and a new share buyback program. The stock jumped 6.5 percent in the Dow. The home improvement chain Home Depot also reported strong business figures for the third quarter, but without raising its outlook for the year. After a weaker start, the share gained 1.6 percent.
The Netflix paper, which rose by 3.7 percent, also came into focus. Bank of America reinstated its buy recommendation. The target price is $370. Netflix remains the leader in streaming, wrote analyst Jessica Reif Ehrlich. The company has transformed the entertainment world in the way content is created, distributed and consumed. She also considers the new advertising-based offer to be value-adding.
The euro went up and down in US trading. At the close of trading on Wall Street, the euro was trading at $1.0351. The European Central Bank had set the reference rate at 1.0404 (Monday: 1.0319) dollars in Frankfurt in the afternoon. The dollar thus cost 0.9612 (0.9691) euros.
On the US bond market, the futures contract for ten-year bonds (T-Note Future) rose by 0.60 percent to 112.80 points. In contrast, the yield on ten-year government bonds fell to 3.773 percent.