Indices in this article
NEW YORK (dpa-AFX) – The US stock exchanges started the new week cautiously on Monday. The Dow Jones Industrial (Dow Jones 30 Industrial), which was initially the only one of the three most important indices to gain, soon gave up its gains. Inflation continues to play an important role for investors. In addition, they should also weigh the impact of a possible global minimum taxation on large corporations such as Apple, Amazon or Alphabet.
The most famous Wall Street index, the Dow, last fell 0.13 percent to 34,710.27 points in early trading. However, it is still within reach of its record high of just under 35,092 points, which it reached around a month ago.
The market-wide S&P 500 lost 0.19 percent to 4222.05 meters. The tech-heavy NASDAQ 100 fell 0.27 percent to 13,734.24 points.
Janet Yellen, the US Treasury Secretary and former Federal Reserve President, on Sunday encouraged President Joe Biden to press ahead with his spending plans to support the economy during the corona crisis, even if it triggered inflation that would last into next year. Yellen also added that a “slightly higher” interest rate environment would be a “plus” for the US. Higher interest rates, however, can put a strain on equities, because compared to fixed-income securities they are threatened with a loss of attractiveness.
Portfolio manager Thomas Altmann from asset manager QC Partners estimates that the stock exchanges could generally live quite well with a slight rise in interest rates. The fear of a sharp rise will probably only return with stronger economic data. As long as the economic data turned out to be at most mediocre, like the labor market report on Friday, don’t be afraid of sharply rising interest rates on the stock exchanges.
Another topic among investors was the taxation of large digital corporations. According to the will of the leading industrial nations, they should pay at least 15 percent tax worldwide in the future. After years of negotiations, the finance ministers of the G7 countries agreed on a global tax reform. The shares of Alphabet, Amazon or Apple hardly reacted to this news.
Alphabet C (Alphabet C (ex Google)) even briefly climbed to a record high in early trading, before then, like the A-shares (Alphabet A (ex Google)) of the Google parent company, they gave way. Amazon also only lost 0.2 percent. For the papers from Apple it went down at the same time by 0.8 percent. The iPhone manufacturer will start its developer conference WWDC this Monday with an outlook on future functions of its smartphone and other devices. According to media reports, major innovations are expected for the Safari web browser, Apple’s maps and the iMessage chat service, among other things.
Biogen (Biogen) gained 1.5 percent on the Nasdaq. This Monday, the US FDA wants to decide on the approval of the Alzheimer’s drug aducanumab.
Moderna (Moderna) jumped 7.3 percent and benefited from the fact that the US manufacturer applied for approval of its corona vaccine for children and adolescents aged twelve and over from the EU Medicines Agency. So far, only the vaccine from Biontech (BioNTech (ADRs)) / Pfizer (Pfizer) may be administered to this age group in the EU.
In addition, the shares of the cinema chain AMC Entertainment (AMC Entertainment A) are still a popular object of speculation. They jumped 13.5 percent recently in extremely brisk trading. In the last two trading days of the past week, the shares had fallen sharply after AMC had successfully used the recently multiplied price to fill its own coffers. / Ck / he