Not only the technology stocks are on the upswing, the price of oil is also continuing to rise. The reason is a possible throttling of the production volume, which OPEC wants to decide on. Meanwhile, investors are grabbing in hopes of fewer rate hikes.
US stock markets continued their recovery. The recent economic slowdown has fueled speculation that the Federal Reserve is slowing its pace of interest rate hikes. The Dow Jones index of standard values was up 2.8 percent at 30,316.32 points and the broad S
"The Bank of England flinched last week, showing investors around the world that central bank aggression has its limits," said Thomas Hayes, managing director at Great Hill Capital. Neil Wilson, chief analyst at online broker Markets.com, sees things differently.
"Some weaker US economic data is leading people to believe the Fed needs to step back and halt rate hikes sooner than thought," Wilson wrote. The rising inflation in the American and European service sector shows that an interest rate turnaround would be a bit hasty. This is because inflation cannot be controlled in this way. "A classic relief rally in a bear market," Wilson continued.
Meanwhile, oil prices continued to rise the day before Opec's production policy deliberations. The price of US crude oil WTI rose by around three percent to $86.19 per barrel (159 liters). A reduction in production by more than a million barrels per day is under discussion. That would be the biggest step since the corona pandemic. Oil prices could benefit from a tightening supply - especially given an escalation in the Ukraine war. "We assume that a significant reduction will be made. It's not just about improving the fundamental situation, but also about sending an important signal to the market," explained the analysts at the research house Fitch Solutions.
Tech stocks were on the up. The papers of Apple, Microsoft and the Google parent Alphabet rose between 2.56 and 3.38 percent. According to experts, rising inflation and higher interest rates will devalue the future profits of these high-growth companies.
Surprisingly high quarterly sales from Rivian encouraged investors to invest in the electric car maker and its rivals. Rivian shares jumped over 13.83 percent. Tesla recovered from the slump after disappointing sales figures on Monday and gained 2.9 percent. Twitter jumped 22.26 percent to $52.01. According to circles, Tesla boss Elon Musk is now ready to complete the takeover of the short message service, which has since been canceled, at the originally offered price of $ 54.20 per share.
