Tech stocks remain in focus
With quiet business today, Wall Street was panting. However, tech stocks are benefiting from waning interest rate fears. The Nasdaq remains on the hunt for records. After the high volatility of the past trading days, things were quieter today on the New York World’s Leading Exchange. Investors took a deep breath after Federal Reserve Chairman Jerome Powell dampened market inflation worries yesterday. In particular, he stuck to his stance that higher inflation rates migrecede and were due to an “unusual situation” in the waning pandemic.
The stock market seems to be satisfied with that for the time being. As a result, the major US indices maintained their high-level today, but the fluctuations were small overall. In early business, the focus was on technology stocks, which benefit particularly from easing interest rate worries and vice versa. Both tech stocks the Nasdaq Composite Index at 14,317 and the selection index of Nasdaq 100 at 14,324 points reached further record levels in the course of trading. But they could not maintain the level, in the end, the composite index closed at 14,271 points, 0.13 percent higher. The Nasdaq 100 went out of trading at 14,274 points, a minus of 0.03 percent.”
“My goals are 100 percent the same as the Foundation, but my physical participation is in no way necessary to achieve those goals,” said Buffett, who is long-time friends with Bill Gates. Gates and his wife Melinda announced their divorce after 27 years of marriage about a month ago but have promised to continue their philanthropic work together. The BMG is involved, among other things, in the fight against diseases.
Inflation in tech stocks market
Inflation remains the number one topic. There is still only the topic of inflation on the stock market – and the associated concerns about a sharper pace on the part of the central banks. “Economic data doesn’t matter,” said stock trader Keith Temperton of brokerage firm Forte Securities. “The only data that matters is inflation. It’s just about the central banks feeding the sugar frenzy in the market. And that’s not going to end anytime soon because if it does, everything will collapse. In the USA, there are signs of a very cautious exit from the market at best, and in Europe. The issue is simply not happening, despite rising price data. In any case, monetary headwinds for the markets look different. “It is remarkable that the central banks remain sufficiently relaxed with regard to the inflation outlook”, said DekaBank’s chief economist, Ulrich Kater.
Euro economy in good shape. Easing after the corona lockdown is causing the eurozone economy to experience the strongest growth in 15 years. The purchasing index, which summarizes industry and service providers, climbed unexpectedly by 2.1 to 59.2 points in June, as the IHS Markit institute announced on Wednesday for its monthly survey of thousands of companies. The barometer signals growth from 50 points. said Market chief economist Chris Williamson. What could also be a double-edged sword: Since many companies have difficulties in meeting the demand, increasing-price pressure is inevitable, Williamson warned Euro stabilizes.
The common currency benefits from the strong sentiment data. The euro costs 1.1936 dollars in US trade, a little less than in Europe. It remains below the $ 1.20 mark. “The economy in the euro area is taking off,” commented expert Christoph Weil from Commerzbank on the data. Thanks to the relaxation of the Corona restrictions, the economy “noticeably picked up speed”. Fundamental headwinds for the US dollar occurred in the afternoon after new economic data were weaker than expected.
The US economy
US economy loses momentum in June The US economy, which has recovered well from the Corona crisis, slowed its pace in June. The purchasing managers’ index for the private sector – service providers and industry combined – fell by 4.8 to 63.9 points, as the IHS Markit institute announced on Wednesday for its monthly company survey. However, the barometer stayed well above the 50 mark, from which it signals growth. In industry alone, the business has never been better, while it has lost momentum with service providers. Markit chief economist Chris Williamson said the barometer indicated “further impressive growth in the US economy in June, rounding off an unprecedented growth spurt in the second quarter as a whole. New home sales fell 5.9 percent month-on-month in May, the Department of Commerce announced in Washington on Wednesday.They had expected a slight increase of 0.2 percent on average.
Oil prices do not stop Driven by the hope of economic catch-up effects after the pandemic, the rise in oil prices cannot be stopped at the moment. A barrel (159 liters) of North Sea Brent costs over $ 75. As a result, oil prices are still near their multi-year highs. Experts believe prices of 100 dollars per barrel are possible. Prices were recently boosted by new inventory data from the USA. The American Petroleum Institute (API) reported another significant decline in national crude oil inventories on Tuesday evening.