After an easier start, the US stock exchanges started to recover strongly on Thursday. Market observers cited weaker-than-expected labor market data from the private sector and order data from industry as reasons, which should calm investors somewhat in view of the interest rate policy of the central bank (Fed). In addition, the oil alliance Opec+ will significantly increase its production in the summer. According to Andreas Lipkow, market expert at Comdirect, this can help to reduce inflation dynamics and ease the cost pressure on companies.
Dow Jones, S&P 500 and Nasdaq up
The best-known Wall Street index, the Dow Jones Industrial, ended trading up 1.33 percent to 33,248.28 points. It closed just below the daily high it had just reached. The market-wide S&P 500 gained 1.84 percent to 4176.82 points. The Nasdaq 100 index, known for its technology stocks, rose by 2.75 percent to 12,892.89 points. All three indices are now back at their highest level for almost a month
According to the employment service provider ADP, far fewer jobs were created in the US private sector than expected in May. In addition, the increase in orders in US industry in April fell short of the forecasts and the development in March was also weaker than initially forecast.
Expert Edward Moya from broker Oanda justified the fact that this news was driving the stock exchanges by saying that there were different opinions on the market regarding the recession forecasts and possible interest rate hike breaks by the Fed. “Hope for a less aggressive tightening campaign has risen after a slew of economic data suggested the economy and inflation are cooling.”
Microsoft with profit
In the Dow, Microsoft shares recovered after a very weak start to trading and ultimately closed up 0.8 percent. Analysts did not attach great importance to the software group’s quarterly forecasts, which were lowered because of the strong dollar. After all, it’s not about the fundamental health of the company, it’s just an external factor, said Barclays analyst Raimo Lenschow. “Most investors are looking at the company’s currency-adjusted numbers anyway.”
Ciena fell 1.3 percent after the telecom group disappointed with its margins and quarterly earnings per share.
It went down even more clearly with minus 5.2 percent for the shares of Hewlett Packard Enterprise. The information technology company missed profit expectations in the past quarter and lowered its earnings outlook for the current fiscal year.
On the other hand, Chewy’s shares made an impressive jump in price of a good 24 percent. With its quarterly figures, the online retailer for pet supplies has exceeded the previously dampened expectations of investors, wrote analyst Steven Shemesh from the Canadian bank RBC in an initial reaction.
Euro exchange rate rises again
The euro continued to rise in US trading, benefiting from weakness in the greenback. At the close of trading on Wall Street, the common currency cost $1.0748. The European Central Bank had previously set the reference rate at 1.0692 (Wednesday: 1.0712) dollars. The dollar thus cost 0.9353 (0.9336) euros.
On the US bond market, the futures contract for ten-year Treasuries (T-Note Future) rose by 0.22 percent to 119.31 points. The yield on ten-year government bonds was 2.91 percent.
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