Tuesday June 22, 2021
Microsoft is getting closer to Apple
Powell gives Wall Street that extra boost
One day after the highest daily gain in months, Wall Street closed again in positive territory. The reason for this is the speech by Fed Chairman Powell, who wants to remain calm for the time being, despite the rise in inflation in the USA. Meanwhile, Microsoft’s stock market value is approaching an important mark.
Wall Street closed with surcharges in the evening. The fact that it was only one day after the highest daily profit in over three months was also due to the head of the US Federal Reserve, Jerome Powell. Because he had again signaled to a committee of the House of Representatives that the central bank would be patient before tightening its monetary policy.
The Dow-Jones-Index gained 0.2 percent to 33,946 points, S&P-500 and Nasdaq-Composite gained 0.5 and 0.8 percent respectively. The technology-heavy Nasdaq benefited from lower market rates.
In trade, Powell’s affirmation that inflation developments were temporary provided relief. Because this view underpinned the market’s hope that monetary policy tightening will be a while in coming.
“Given that the markets are still very sensitive to comments from Fed officials and inflation expectations, the next few days promise to be quite eventful for the markets with many Fed officials on the list,” said FXTM analyst Lukman Otunuga . Altaf Kassam, head of investment strategy at State Street Global Advisors in Europe, believes stimulus measures will be slowly scaled back, but not in the immediate future.
Dollar is losing ground
The lost on the foreign exchange market Dollar with the prospect of an ultra-loose monetary policy remaining in the ground in the short term, the dollar index fell by 0.2 percent. The Euro in turn, climbed to $ 1.1945 after a daily low of 1.1881. Yields on the US bond market fell with the prospect of a short-term turnaround in interest rates. The ten-year yield on US Treasuries fell 2.5 basis points to 1.47 percent.
The Gold price was a little easier despite lower market interest rates. However, the important support at $ 1,775 held. The Oil prices tended to a 32-month high after the rally of the previous day. Participants attributed this to a media report that Russia was considering a proposal to expand the production of the Opec + group. US production has also recently increased again.
Microsoft’s market value at nearly $ 2 trillion
The software company’s share rose on the stock market Microsoft by 1.1 percent. The market capitalization climbed to around 1.99 trillion US dollars. Should the 2 trillion mark fall, the company would close Apple on. Here the market capitalization was already around 2.21 trillion dollars, but no other listed US company comes to 2 trillion dollars or more.
American Airlines gave up the second day in a row – the price lost another 1.5 percent. The airline had announced the day before that it would cancel hundreds of flights in order to reduce possible operating strains. The steps are testament to the challenges that the increasing demand dynamics in air traffic bring with it, it said in the trade. Sink in the wake Alaska Air by 1.2 percent, Southwest Airlines by 1 percent and Delta Air Lines by 0.9 percent.
Splunk increased by 11.3 percent. The software company announced that private equity firm Silver Lake will invest $ 1 billion in the company through convertible bonds. This is intended to finance growth. In retail, however, it was particularly well received that a share buyback program is also to be financed. Tupperware Brands rose by 10 percent. The company wants to buy back shares and also repay debts early.