Stock Markets to Initiate Aviation This Week
Stock Markets Rise Following Tariff Delay and Strong Consumer Confidence
Wall Street experienced significant gains this week, driven by positive signs from Europe and unexpectedly strong US consumer confidence. The postponement of the trade dispute between the US and the EU and the heeding of additional tariffs on EU imports to July 9 have fostered a buying mood on Wall Street. Investors now view US tariff threats more as negotiation tactics than trade policy decisions, reducing their impact on the financial market and boosting stock prices.
The Dow Jones Index jumped by 1.8 percent to 42,344 points, the S&P-500 and Nasdaq Composite rose by 2.0 and 2.5 percent respectively. Preliminary data from the NYSE showed 2,411 gainers and 380 losers. Thirty-five stocks remained unchanged, reflecting the overall market optimism.
Economic data further supported the positive sentiment, as the US consumer confidence improved more than expected in May. "Consumer confidence improved in May after falling for five consecutive months," said economist Stephanie Guichard of The Conference Board. Long-lasting goods orders also developed better than expected, despite having declined significantly in April.
The dollar recovered somewhat from recent losses, with the Dollar Index gaining 0.4 percent. Lower recession fears and positive economic data contributed to the recovery. Despite strong demand for US Treasury auction notes, yields initially fell further, influenced by decreased expectations of rate cuts and growing confidence in US assets.
Oil prices faced losses of 1.0 percent, with OPEC+ expected to discuss potential production increases at its upcoming meeting. The gold price dropped significantly due to a strong dollar, waning rate cut fantasies, and increased interest in US assets.
Tech stocks remained in high demand. Nvidia received support from plans by a tech giant to offer simpler and significantly cheaper AI chips specifically for the Chinese market, starting in June. This news boosted the stock by 3.2 percent. Another notable tech stock, Apple, showed significant growth, recovering most of Friday's losses, despite US President Trump's threat of 25 percent tariffs on iPhones made in India.
Qualcomm was granted more time to make a firm offer for the acquisition of UK semiconductor manufacturer Alphawave IP Group. The deadline has been extended for the third time, now to Monday. No financial details were disclosed, causing the shares to rise by 2.2 percent. Tesla, despite its sharp decline in US electric vehicle maker's sales in Europe in April, saw its stock gain 6.7 percent following CEO Elon Musk's announcement of a renewed focus on leading his companies.
Salesforce is on the verge of a billion-dollar acquisition. The US enterprise software provider plans to acquire Informatica, a specialist in data management software, for around $8 billion. Eli Lilly is also pursuing another acquisition: the pharmaceutical company will acquire SiteOne Therapeutics, a company specializing in pain treatment, for up to $1 billion. Finally, PDD Holdings plunged due to a sharp drop in profits caused by weakening demand in China.
[SOURCE: ntv.de, mau/DJ]
In this new economic landscape, the postponement of tariffs, particularly those involving the European Union and other nations, can have significant implications for both the US stock market and the broader economy. The delay allows more time for trade negotiations, potentially leading to more favorable trade agreements and increased trade volumes, benefiting economic growth and reducing costs for businesses. However, the long-term impact depends on the outcome of ongoing trade negotiations and any future policy changes.
The community and employment policies could potentially be affected in the long run, as the postponement of tariffs with the European Union might lead to more favorable trade agreements, which could reduce costs for businesses and stimulate employment in the US. In the meantime, investing in the stock market seems to be a favorable business decision, considering the current strong consumer confidence and the rising stocks in the US. The finance sector might also see positive changes, as the delay in tariffs could foster increased trade volumes, benefiting economic growth.
