Falling inflation gives investors hope that the Federal Reserve's zeal in tightening monetary policy is easing. Buying mood prevails on Wall Street on Tuesday. However, Tesla cannot benefit from this.
Surprisingly sharp decline in US inflation fuels Wall Street. The Dow Jones gained 0.3 percent on Tuesday to 34,108 points. The tech-heavy Nasdaq was up one percent to 11,256 and the broad-based S
US goods and services inflation fell to 7.1 percent in November from 7.7 percent in October. Experts had expected 7.3 percent. It's the fifth straight decline, raising hopes that the US is past the peak of the inflation wave. This should in turn take the pressure off the US Federal Reserve to raise interest rates significantly. "If data like today's shows a real trend, the Fed could pause for the next several months with interest rates still tight but not unduly stressing the economy," said Rick Rieder of asset manager BlackRock. After four jumbo interest rate hikes by the US Federal Reserve of 0.75 percent in a row, the majority of stockbrokers at the Fed meeting on Wednesday are assuming a rate hike of half a percentage point.
The euro rose almost 0.9 percent to $ 1.0627. Gold rose 1.6 percent to $1,810 a troy ounce. In the crude oil market, meanwhile, supply concerns supported prices. The Keystone pipeline in the USA, which has been closed for almost a week, contributed to this. Brent crude oil rose almost 3.5 percent to $80.69 per barrel (159 liters), while light US oil WTI climbed 3.1 percent to $75.44 per barrel. Oil companies such as Chevron, Marathon Oil and Exxon Mobil were up between 1.1 and 2.2 percent accordingly. "Crude oil rose as supply-side issues offset concerns about weaker demand," analysts at ANZ Research wrote. The Keystone Pipeline, which transports around 620,000 barrels of Canadian crude oil to the US every day, has been closed since a leak was reported on December 7th.
Interest rate concerns, which eased after the US inflation figures, prompted investors to turn to technology and growth stocks in particular. Alphabet, Microsoft and Meta prices rose by up to 4.7 percent.
The shares of the electric car manufacturer Tesla, on the other hand, fell by almost 4.1 percent and have meanwhile reached a two-year low. According to analysts, investors' distrust of Tesla boss Elon Musk affected the share. Investors are afraid that Musk's tweets will harm the brand, said Dennis Dick of brokerage Triple D Trading. According to Robert Pavlik, portfolio manager at wealth manager Dakota Wealth, the stock has been under pressure since Musk's bumpy takeover of Twitter.
Study results on a skin cancer drug gave Moderna a boost. The shares of the US biotech company shot up 19.6 percent. The combination of a vaccine from Moderna and a drug from the US group Merck has reduced the risk of dying or recurring from melanoma in a study. In comparison, the Merck immunotherapeutic alone was 44 percent less effective. Merck shares were up 1.8 percent.
