According to experts, the high inflation is of a temporary nature, which means that there is room for continued support from the central bank umbrella. The Fed’s interest rate meeting is scheduled for next week. In addition, investors are keeping an eye on developments surrounding the G7 summit in the United Kingdom.
Earlier, the Fed said it did not expect an interest rate hike for the time being. However, as a result of the support measures, the increasing reopening of the economy and the support package of US President Joe Biden, the economy is clearly on the move. To prevent overheating, phasing out aid or raising interest rates would be a realistic option. Finance Minister Janet Yellen also said earlier that he had no problem with higher interest rates. This makes it harder and harder for the Fed to stand firm.
The leading Dow-Jones index was 0.3 percent higher in early trading at 34,578 points. The broad S&P 500 rose 0.2 percent to 4,247 points, after Thursday’s record close. Tech gauge Nasdaq increased 0.2 percent to 14,041 points.
Among the companies, Vertex Pharmaceuticals was among the losers, with a price loss of more than 8 percent. The pharmaceutical company has stopped developing an investigational drug to treat a rare genetic disease called AAT deficiency. Industry peer Biogen also rose more than 2 percent. The company that received FDA approval for its Alzheimer’s drug earlier this week benefited from advice increases.
In addition, cruise company Royal Caribbean lost almost 2 percent. Two passengers on board the ship Millenium tested positive for the corona virus. The travelers are now in isolation and the company is in the process of tracing the contacts that the two had.
Trading in so-called “meme stocks” such as GameStop (plus 3.3 percent), AMC Entertainment (plus 3.3 percent) and Clover Health (down 6.1 percent) remained volatile. Through internet forums such as Reddit, investors encourage each other to buy up certain securities en masse, as a result of which professional investors who speculate on a fall in price, so-called shortsellers, are saddled with significant losses.
Airline American Airlines won 0.5 percent. The company is investing $25 million in flying taxi startup Vertical Aerospace.
Every morning the most important financial news.
Invalid email address. Please fill in again.
Wall Street higher from starting blocks; good business GameStop | Financial
Source link Wall Street higher from starting blocks; good business GameStop | Financial