The US stock markets continue to rise. Once again, the major indices are making decent gains. Above all, tech stocks like Nvidia are again in great demand among investors. Corporate balance sheets are also better than expected.
Stronger-than-expected corporate balance sheets and hopes of fewer Fed rate hikes lifted sentiment on Wall Street. The leading index Dow Jones gained 1.1 percent to 31,836 points. The tech-heavy Nasdaq advanced 2.3 percent to 11,199 points, the broad-based S
"After hopes of a reversal of interest rate hikes revived last Friday, bad news is good news for the markets again," said analyst Konstantin Oldenburger from broker CMC Markets. The currently published weaker, but not too weak economic data thus played into the hands of investors.
Yields on the 10-year US government bond fell to 4.075 percent as fears of interest rate hikes receded. Technology stocks were accordingly on the upswing. Apple's shares rose 1.9 percent, and graphics card manufacturer Nvidia rose 5.2 percent. According to experts, rising inflation and higher interest rates will devalue the future profits of these high-growth companies.
The pound was firmer around the handover of UK Prime Minister-elect Rishi Sunak. It rose 1.8 percent to $1.1473. On the other hand, the dollar index, which reflects the exchange rate for major currencies, fell by one percent to 110.87 points.
Microsoft and Google parent Alphabet each gained more than one percent before their expected post-market close. There is a positive attitude towards technology company profits, said Giuseppe Sette, head of research house Toggle. "In a way, their ability to weather an inflationary cycle is strong - especially since the tech industry has always been very flexible in its pricing."
PayPal was also in demand, increasing by 7.1 percent. Amazon wants to use a payment processor platform in the future. Soaring prices for sugary sodas have not deterred Coca-Cola customers. The titles increased by 2.4 percent after the quarterly figures were more robust than expected. General Motors impressed with a surprisingly high quarterly profit. The title of the largest US automaker increased by 3.6 percent.
At the same time, investors turned their backs on General Electric after a slump in profits. The titles of the US industrial group fell 0.5 percent. Those of the armaments group Raytheon fell by 1.5 percent after a reduction in the forecast.
