The last stock exchange quarter of the year starts with mostly green signs. But on Wall Street, investors are unsure whether the rise will be sustainable. The only thing that speaks for that is the calendar. On the other hand, economic data and interest rate expectations speak against this.
With strong price gains, the shares on Wall Street have said goodbye to trading. Fresh inflows of funds at the beginning of the month should have had a supportive effect on the stock exchanges, it said. In addition, the fourth quarter is considered to be seasonally strong, and the weak September has priced in some risks. Last but not least, investors have been betting that the US Federal Reserve could slow the pace of its interest rate hikes if financial stability could be threatened: memories of the collapse of the bank Lehman Brothers in 2008 were awakened in the market when risk premiums for hedging against the default of bonds from the Swiss Credit Suisse rose again and the share dropped to a record low at times.
The Dow Jones index gained 2.7 percent. For the S
The published economic data were largely disappointing. Construction spending fell more than expected in August. The one from S
By far the strongest sector was energy stocks, which rose by an average of 5.8 percent in the slipstream of the sharply rising oil price. On the rest of the market, Tesla shares fell 8.6 percent. While the company's vehicle deliveries rose to a record high last quarter, the number fell short of Wall Street forecasts. In contrast, General Motors (GM) increased sales in the third quarter by 24.3 percent and reported better inventory levels. The stock advanced 2.4 percent.
Intel gained 4.7 percent. The chip manufacturer is driving the IPO of its driver assistance subsidiary Mobileye. The Israel-based company said it filed an application for a stock exchange listing with the US Securities and Exchange Commission on Friday.
A deal with hotel chain Hilton gave Peloton stock a boost, and it was up 7.8 percent. The fitness equipment maker will outfit the group's US hotels with its bikes.
The dollar rebounded slightly after the disappointing ISM index. The dollar index fell 0.4 percent. Its safe haven status and tight monetary policy from the US Federal Reserve provided overall support for the greenback.
Oil prices went up sharply. WTI and Brent prices each rose by up to around five percent. Because of the significant drop in oil prices, OPEC is apparently considering the most drastic production cut since the beginning of the corona pandemic. The Oct. 5 meeting will target a reduction in production quotas by more than 1 million barrels a day, people familiar with the plans said.
The bond market bought after yields had rallied in September. Now it went in the opposite direction, after the weak ISM index, the fixed-interest received further inflow. The ten-year return fell by 18 basis points to 3.65 percent.
As bond yields fell, gold became more attractive to many investors. The price of the zero-interest precious metal, which had fallen sharply in recent months in response to rising interest rates, rallied more than 2 percent to $1,700.
