Almost unaffected by the demonstrations in the US, the stock market indices are booming. The main reason for this is the relief given the increasing corona openings.
New York (dpa) - Equity investors in New York on Tuesday weighted the global easing in the corona crisis higher than the current social unrest in many US cities.
The leading index, Dow Jones Industrial, rose 1.05 percent to 25,742.65 points, but was not quite able to exceed the high it had reached the previous week since the beginning of March. The S&P 500 succeeded in doing this - the market-wide and therefore particularly meaningful index closed 0.82 percent higher at 3080.82 points.
The technology-heavy Nasdaq 100 gained 0.61 percent to 9657.31 points, which means the index is only less than a hundred points short of its record high this February. Since the Corona crisis low at the end of March, the Nasdaq 100 has now increased by a good 43 percent, thus achieving an almost perfect V-shaped recovery.
"Most of the growth in the technology sector is due to the big players in the industry, such as Apple, Amazon, Facebook and Google," explained analyst Konstantin Oldenburger from CMC Markets. These companies now accounted for a significant portion of the market index of the entire index.
With regard to the overall market, traders said that investors are currently weighing up. On the one hand, they look at the relief given the increasing opening of economies after the Corona crisis and the numerous economic aid packages. Tensions on the trade front between the United States and China would not have intensified for the time being. On the other hand, the unrest in the United States worried.
After the death of African American George Floyd in a brutal police operation, they had continued to increase, which is why US President Donald Trump announced the mobilization of all available civil and military forces of the government on Monday evening, if necessary.
"However, the main focus on the stock market seems to be once again on the longer-term prospects of the global easing measures," said Oldenburger's colleague Michael Hewson from CMC Markets UK. It also makes it easier that Trump has not yet intensified the conflict with China over Hong Kong as feared.
Among the individual values, the papers of the oil companies ExxonMobil and Chevron each gained slightly more than two percent. Oil prices expanded their profits somewhat, which led traders to hope that the cutbacks in production that had been decided so far could be extended. The producing countries combined in the Opec + network agreed in April to reduce daily crude oil production in May and June. According to insiders of Opec +, this regulation could now be extended by one month.
At the top of the Dow, the shares of the chemical company Dow Inc advanced by more than five percent. The papers of the pharmaceutical company Pfizer recovered with an increase of almost two percent, somewhat from their previous day's setback of a good seven percent.
Given the unrest in many cities in the United States and President Trump's threat of military action, shares of US weapon manufacturers such as Sturm Ruger & Co rose by 4.35 percent and Vista Outdoor by 7.50 percent. The shares of Smith & Wesson Brands, the arms business that was just spun off from American Outdoor Brands, jumped a little more than 10 percent.
Tiffany slumped sharply in the last hour of trading after a media report that French luxury goods company LVMH regards the purchase of the US jeweler as unsafe. Tiffany went out of business with a minus of almost nine percent.
Zoom Video Communications reached another record high of $ 212.69, which at the end of the day cost $ 208.08, up 1.93 percent. The provider of web conferences, which went public in April 2019 with $ 36 per share, released its figures for the first quarter of 2020/21 after the closing of the U.S. market: Revenue in the previous quarter rose from 122 in a year-on-year comparison $ 328 million, Zoom said. The bottom line was around $ 27 million in profit after just around $ 200,000 a year earlier. Zoom was originally intended for use in companies, but in the Corona crisis, use by private individuals as well as for sports courses, church services or education increased. There are now 300 million participants in video conferences per day - compared to ten million in December.
The euro temporarily scratched the $ 1.12 mark. After the United States closed, $ 1.1166 was paid in the common currency. The European Central Bank (ECB) had set the reference rate at $ 1.1174 (Monday: 1.1166), which had cost the dollar 0.8949 (0.8996) euros.
In the US bond market, trend-setting ten-year government bonds lost 7/32 points to 99 14/32 points and returned at 0.682 percent.