Persistently high interest rates are keeping Wall Street investors on the defensive as trading begins. Ultimately, however, things are clearly looking up, also thanks to robust company balance sheets. Some companies from the semiconductor industry are shaken from the day, slipping in the wake of Tesla.
The US stock markets closed tighter after a roller coaster ride. The Dow Jones index of defaults went 1.1 percent higher to 33,003 points from trading. The tech-heavy Nasdaq advanced 0.7 percent to 11,462 points. The broad S
Traders justified the price premiums with statements by Fed central banker Raphael Bostic. The president of the Atlanta branch of the Fed had said he favored a slow and steady Fed stance with rate hikes of 25 basis points as the impact of higher rates may not be felt until the spring. As a result, US 10-year Treasury yields eased from a four-month high.
In addition, robust company balance sheets supported prices on the overall market. In early trading, concerns about interest rates and a price slide at Tesla had clouded the mood on Wall Street.
In terms of individual values, Macy's climbed by more than eleven percent. The US department store chain is much more optimistic about the current fiscal year than stock marketers had expected. Salesforce was also able to score points with investors. The SAP rival announced better-than-expected sales thanks to robust demand for its products. The shares also rose by more than eleven percent.
Tesla boss Elon Musk was unable to meet expectations with his strategic statements at the investor day. Above all, the disappointment about the absence of new models weighed heavily: the papers fell by around six percent. The decision to reduce the use of silicon carbide semiconductors in Tesla vehicles pushed the shares of the supplier Wolfspeed down about seven percent. In addition, Tesla plans to replace expensive raw materials such as rare earths in drive production in the struggle to save costs. Shares in the provider MP Materials fell eleven percent. Lithium supplier Albemarle also dived.
Silvergate Capital lost more than half its value after the crypto bank questioned its ability to continue its operations. The institute postponed the presentation of the business figures for 2022, which was planned for March 16. In response, the crypto exchange Coinbase stopped all payments from or to Silvergate.
