Dow Jones, S&P 500, Nasdaq: US economy recovers stronger than expected – Wall Street continues to grow
New York Positive economic data spurred the US stock exchanges on Wednesday. The US standard value index Dow Jones rose by the early afternoon in New York by 0.6 percent to 35,700 points. The broad S&P 500 advanced 0.7 percent to 4,681 points. The technology-heavy Nasdaq rose 0.8 percent to 15,465 jobs.
The mood of US consumers brightened significantly in December despite the ongoing corona worries. The barometer for consumer mood rose to 115.8 points from a revised 111.9 points in November, as the Institute Conference Board announced to its survey. Economists had only expected a slight increase. According to this survey, consumer mood is surprisingly robust despite the continued rampant delta variant of the virus and the highly contagious new omicron mutant.
In addition, the US economy grew faster than expected in the summer and is likely to grow faster in 2021 than it has done in decades. The gross domestic product (GDP) rose in the third quarter on an annualized basis by 2.3 percent, as the Ministry of Commerce announced. In an earlier estimate, it was 2.1 percent. In the second quarter, the gross domestic product even increased by 6.7 percent. According to the Fed, the economy recently ran at a moderate to moderate pace. Economists surveyed by Reuters expect that GDP could rise by 5.6 percent for the full year – the highest rate since 1984. In Corona year 2020, the economy collapsed by 3.4 percent.
US stock market expert Koch: “The volatility at the end of the year remains exceptionally high”
Both Single values investors took advantage of, among others, Pfizer and Merck. Their shares gained up to 1.8 percent. Great Britain ordered an additional 4.25 million doses of the respective coronavirus drugs from the pharmaceutical companies. The US FDA has granted emergency approval for Pfizer’s antiviral pill Paxlovid.
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Cocrystal stocks rose 4.5 percent. According to the information, the drug company’s coronavirus agent, which comes from the same group of active ingredients as the Pfizer drug, was effective in the fight against Omikron.
Also in demand were the papers from Tesla, which rose by a good seven percent in price. Company boss Elon Musk threw further shares with a volume of 528 million dollars on the market, but at the same time signaled that he did not want to part with further packages for the time being. The billionaire wants to use the sales to settle tax claims.
The titles of Alibaba, however, lost 4.4 percent. The government in Beijing canceled a government contract for the online retailer’s cloud division because the company had not taken sufficient care of cyber security. According to a newspaper report, Alibaba informed too late about the recently discovered vulnerability in the widespread software element Apache Log4j.
It also went down for BlackBerry, although the software house had presented a quarterly result above market expectations. The sales of the cybersecurity division have shrunk for the third quarter in a row and the outlook for this division is disappointing, criticized analyst Steven Li from investment advisor Raymond James. The US-listed BlackBerry shares fell 2.6 percent.
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