The U.S. stock market continued its strong appeal at Wednesday’s opening, but the mood quickly turned to a minor win after an hour of trading.
The S&P 500 index moved around its all-time record by just over 3,900 points, until the indices fluctuated to minus five Finnish time.
The S&P index has risen four percent since the beginning of the year. Now the back pack came in at 0.5 percent.
On Wednesday, the real estate and energy sectors in particular pulled out of the industries, but the producers of consumer durables and IT in particular fell.
The market has been supported by expectations of a $ 1.9 trillion stimulus package, which Joe Biden the administration and the Democratic Party are pushing through.
New Minister of Finance Janet Yellen has stated that with the package, the U.S. economy would reach full employment this year.
On the other hand, the massive package has aroused criticism and suspicion that it would overheat the economy, increase the country’s huge debt burden and could lead to an acceleration in inflation.
However, the January inflation reading released on Wednesday fell short of forecasts and did not increase market inflation concerns.
The downward pressure on the market apparently came at least from car stocks, as chip manufacturers ’production bottlenecks are causing a headache for car manufacturers in both Europe and the United States.
For example General Motors fell 5.4 percent at half past six. In recent weeks, strongly accelerated Tesla lost five percent of its value.
The Nasdaq technology exchange bent one percent. The technology sector was also weighed down by a slight decline in the shares of the big giants.
Tesla’s prestige in particular has risen to astronomical. There have been concerns about the escape of the value of the entire market as the share price continues to rise – in the middle of a pandemic.
The earnings season looks strong
However, the current earnings season has in itself reassured analysts that valuation levels have not gotten out of hand.
Analysts expected Reuters according to a 10.3 percent decline in earnings, but so far S&P index companies have achieved 2.5 percent earnings growth.
Reuters writes that Hodges Capital Management research director Eric Marshallin according to this, analysts are slamming higher results for the rest of the year.
The results of the day messaging service Twitter exceeded forecasts and saw the beginning of the year as strong. The company’s share was at the top of S & P’s rise by less than ten percent.
Another tough climber was a sportswear wearer Under Armour, which also hit the predictions. The share strengthened by almost seven percent.
Ride service Lyft Inc strengthened by five per cent when the company announced its ability to make a profit in the early part of the year despite the pandemic. Also a competitor Uber Technologies belonged to the ascenders.
Surprisingly good published Coke did not receive a boost from its results on the stock exchange.
Its results will be announced only after the stock market closes on Wednesday Walt disney was in a slight decline after rising significantly in recent days.
Investors are feverishly waiting for the CEO of the central bank Fed on Wednesday Jerome Powellin talk about the state and outlook of the economy later in the evening.
Source: Arvopaperi by www.arvopaperi.fi.
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