D.he Dow Jones Industrial took another step up to its pre-corona crash level on Friday. The day after the historic change in the US Federal Reserve’s inflation policy, the leading index rose by 0.57 percent to 28,653.87 points. He posted a weekly plus of 2.6 percent. In the course of the year it has recently returned to positive territory.
Unlike recently, the Nasdaq 100 selection index, which is characterized by technology stocks, developed in lockstep, gaining 0.58 percent to 11,995.86 points. The day before it had already risen above the 12,000 mark at times, but now it has not achieved a new record. Only the market-wide S&P 500, which went out of trading for over 3500 points, managed this feat. It closed 0.67 percent higher at 3,508.01 points.
According to the chart experts from Index-Radar, American stocks remain on their upward trajectory with barely noticeable signs of fatigue. According to experts, the prospect of an easy monetary policy for a long time to come helped prices up further. Positive economic signals were also noted at the end of the week, including surprisingly high spending by American consumers and a stronger than expected consumer climate.
On Thursday the Fed announced that the inflation target of two percent should be an average target in the future. In the market, this was seen as a strong sign of an unbroken loose monetary policy – a prospect to suit the taste of investors, said stock market traders. In contrast to the European indices, which suffered from the strength of the euro after the decision, the weak dollar became more of a support for the American stock markets.
Future of Tiktok in America
The future of the Tiktok video app in the United States remained a central theme on Friday. Walmart and Microsoft are now joint favorites for President Donald Trump’s demand for the sale of American activities by the Chinese app operator Bytedance. Walmart continued their price jump from the previous day with plus 2.7 percent and a new record, Microsoft added another 1 percent.
At the top of the Dow, however, were the 3.3 percent higher shares in beverage manufacturer Coca-Cola, which plans to cut thousands of jobs as part of a major reorganization of its businesses. In the course of the planned renovation, the Pepsi rival wants to make its organizational structure much leaner.
Among the large American technology groups such as Apple, Alphabet and Amazon, which recently set high marks in series, only Tesla initially continued its record rally on Friday. For the first time, stocks briefly made it past the $ 2,300 mark, but then the momentum dried up. In the end, they lost a little more than one percent.
Among the second-tier stocks, a few quarterly reports provided topics for discussion. The numbers of the computer companies HP Inc and Dell, whose shares each rose by a little more than six percent, were received positively.
On the Nasdaq, the shares of Workday went up after the quarterly report of the specialist for cloud software with a price jump of 12.6 percent. This was justified with exceeded expectations.
The euro rate increased with the last paid 1.1899 US dollars compared to the previous day’s level. Conversely, the announced change in the Fed’s strategy continued to weigh on the US dollar. The European Central Bank (ECB) had meanwhile set the reference rate at 1.1915 (Thursday: 1.1806) dollars. The dollar cost 0.8393 (0.8470) euros.
The prices of US government bonds rose somewhat in most of the maturities. Trend-setting ten-year bonds gained 7/32 points to 99 points. They yielded 0.73 percent.