ROUNDUP / New York Equities: Recovery continues – inflation as expected

NEW YORK (dpa-AFX) – According to new inflation data, the US stock exchanges continued their recent recovery on Wednesday. Consumer prices in the US rose 7.0 percent from the same month last year. This is the highest inflation rate since 1982, but it was expected by analysts. The pressure on the US central bank is now decreasing somewhat, and potential measures by the monetary authorities have already been incorporated into the rates, said market expert Andreas Lipkow from Comdirect.

The leading index Dow Jones Industrial (Dow Jones 30 Industrial) gained 0.50 percent to 36,436 points in the first hour after opening. The market-wide S&P 500 advanced 0.70 percent to 4746 points. For the technology-heavy NASDAQ 100 – on Monday still at its lowest level since mid-October – the recovery rally continued with an increase of 0.99 percent to 16,001 points.

On the US bond market, the yield on ten-year paper fell back towards 1.7 percent. That also provided relief. However, strategist Marko Kolanovic from the investment bank JPMorgan does not see any real burden on stocks even in rising interest rate expectations and capital market returns. Rather, they speak in favor of shifting growth stocks into valuable papers.

The day before, US Federal Reserve Chairman Jerome Powell had already calmed the markets and emphasized the economic strength of the United States. Due to the strong economy and the high inflation rate, he had signaled an increase in the key interest rate for the period from March onwards.

Among the individual stocks, the focus is on Biogen shares with a price drop of 9.5 percent in the middle of the week. US public health insurance plans to severely limit the cost of Biogen’s immense cost of Alzheimer’s drug Aduhelm. The papers of the pharmaceutical company Eli Lilly (Eli Lilly and), which, according to investors, is developing an even more promising Alzheimer’s drug, fell by 4.3 percent.

The shares of Meta (Meta Platforms (ex Facebook)) were quoted 0.3 percent higher and were thus unaffected by a negative court decision. The competition lawsuit, with which the US government wants to smash the Facebook operator, was accepted by a court in Washington at the second attempt. Judge James Boasberg saw the allegation of unfair competition in the amended lawsuit much better justified and also rejected Facebook’s demand to dismiss the lawsuit.

In the Dow, Microsoft’s titles were ahead with a plus of 2.5 percent. This was followed with a plus of 2.2 percent by the shares of Boeing, which were already the day’s winner the day before with a strong profit. The shares of the pharmaceutical company Johnson & Johnson (JohnsonJohnson) were behind in the leading index on Wednesday with minus 1.6 percent./ajx/he


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