The New York Stock Exchange brings the strong January to a befitting end: After a weak start to the week, the standard value indices more than made up for the losses of the previous day thanks to a final spurt. Technology stocks in particular are on the up again.
Hopes of smaller rate hikes by the US Federal Reserve are giving Wall Street a boost. The Dow Jones index of standard values closed 1.1 percent higher on Tuesday at 34,086 points. The tech-heavy Nasdaq advanced 1.7 percent to 11,584 points. The broad S
Above all, a surprisingly gentle increase in wages in the USA has brightened investor sentiment. Labor costs rose 1 percent in the fourth quarter, compared to 1.2 percent in the previous quarter and the median analyst forecast of 1.1 percent. "The Fed will be reviewing any index by tomorrow that could give it a better look at inflation, and this is one of them," said economist Peter Cardillo of investment adviser Spartan Capital Securities.
Analysts believe it is a foregone conclusion that the Fed will cut interest rates on Wednesday in view of falling inflation. A rate hike of 25 basis points is expected. "The question will now be how the Fed will communicate afterwards," said Jason Pride, chief investor at wealth manager Glenmede. "They probably think they're on the right track with interest rates, but the recent rise in stocks and the drop in longer-term interest rates isn't necessarily what they want."
Investors' hopes supported the oil price. The light US variety WTI rose in price by 1.5 percent to $79.11 per barrel (159 liters). Meanwhile, March Brent crude futures fell 0.5 percent to $84.47 a barrel. The March contract expires on Tuesday. The more heavily traded April contract rose 1.3 percent to $85.57 a barrel.
Investors also turned to US government bonds. In contrast to the rising prices, yields fell. Ten-year US bonds returned about 3.529 percent after 3.551 on Monday. That helped technology stocks like Amazon, Microsoft and graphics card maker Nvidia gain up to 2.6 percent. According to experts, rising inflation and higher interest rates will devalue future profits from these high-growth companies.
In terms of individual values, the group results and forecasts remained in the spotlight. A quarterly result above market expectations and an increase in the dividend encouraged investors to invest in UPS, for example. Parcel service shares rose nearly five percent to $185.23. The papers of the largest US automaker General Motors also rose after a record profit by 8.3 percent to $ 39.32. The surprising increase in Spotify subscribers also drove the title of the music streaming service by 12.7 percent to $ 112.72.
In contrast, shares in construction machinery manufacturer Caterpillar fell 3.5 percent to $252.29 after missed profit expectations. A warning of potential drag from rising inflation also pushed shares in fast-food chain McDonald's down 1.3 percent to $267.40.
