Powell lights up the mood: Wall Street is bouncing back strongly

Powell lights up the atmosphere
Wall Street is recovering strongly

US equity markets are back on track for recovery. This is mainly due to statements by Fed Chairman Powell. On the other hand, Tesla boss Musk, who is putting his billion-dollar acquisition of Twitter on hold, is causing a stir. The shares fall by 9.6%.

After a long drought with some shaky signs of stabilization, Wall Street has managed to recover. US Federal Reserve Governor Jerome Powell provided an improvement in mood at the end of the week. Although Powell doesn’t rule out a “big” 75 basis point rate hike the market feared, he calmed down by saying, “I said we’re not actively considering it.”

of the Dow Jones Index gained 1.5 percent to 32,197 points S & P-500 increased by 2.4 percent and the Nasdaq-Composite 3.8 percent off. A total of 2,672 (Thursday: 1,530) winners of the course and 680 (1,860) losers, 97 (87) titles closed unchanged were counted at the Nyse.

S&P 500
S&P 500 4,022.91

However, traders spoke of unchanged concerns about the current economic development, the market environment with stagflation fears remained negative, he said. The Nasdaq alone posted losses of 6.3% Monday through Thursday, but also recovered particularly strongly towards the end of the week.

According to Powell and the previously published consumer and producer inflation data, import and export prices have become less important. The recent weakening trend in inflationary pressures has been confirmed by the new data. Meanwhile, consumer sentiment has clouded more than expected.

Musk crashes Twitter

Among the individual stocks collapsed Twitter of 9.7 percent, before the market it was up to 25 percent. Elon Musk has suspended the acquisition of the Twitter short messaging service. The main investor has doubts about the number of actual users due to many fake accounts. Therefore, the purchase price may need to be renegotiated. But he doesn’t question the deal itself.

Twitter 38.83

Robin Hood jumped nearly 25 percent. The CEO of cryptocurrency exchange FTX Trading has joined the operator of the trading platform of the same name. Sam Bankman-Fried owns 7.6% of Robinhood Markets, according to a filing with the Securities and Exchange Commission.

Fintechs in general have been hit by wheels during the recent market turmoil. This also applied to Affirm the holdings, which now cost 31.4% more. The payment service provider surprisingly increased its revenue significantly in the third quarter and was confident it would be able to survive even in an unstable market environment. Since the beginning of the year, however, the share price has fallen by more than 85%.

The economic data of Motorola Solutions (+6.9 percent). The communications solutions provider for authorities and security organizations, which emerged from the Motorola split in 2011, exceeded analysts’ expectations in the first quarter.

Dollar pulls back to the upside

The increased risk appetite manifested itself in the slight weakening of the dollar Dollar index lost 0.3 percent. However, MUFG analysts continue to rely on rising dollar prices. The euro, on the other hand, risks remaining vulnerable to phases of weakness. Even in the bond market, where prices have fallen and yields have risen, traders have spoken of falling risk aversion. Concerns about stagflation have recently raised prices.

Crude (Brent)
Crude (Brent) 111.22

To die oil prices it has meanwhile increased significantly, even as the planned EU embargo on Russian oil is becoming increasingly unlikely. Hungary wants to oppose this. However, the International Energy Agency sees a tighter supply due to EU sanctions against Russia. Russia lost supply volumes in April, development is likely to continue in May, he said.

of the gold price It fell to a fourteen-week low as market rates rose after posting its largest weekly decline in 11 months. Especially the demand with the tightening of monetary policy. The prospect of a rise in key interest rates speaks generally against the precious metal, he said.

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