American investors depend on tax incentives from their government
In the US, bids on the S&P 500 and Nasdaq hit another record high on Friday. Investors have shown a particular interest in the energy sector, financial companies, and industrial stocks. On the other hand, the big tech companies were less well known.
Many investors are counting on new financial support from the US government to help the economy recover. In this case, they expect the strongest growth of the pillars of the traditional economy.
The Dow Jones Industrial Average rose 0.09 percent to 31,459 points, while the Standard & Poor’s rose 0.48 percent to 3,935 points. The Nasdaq Composite Index rose 0.5 percent to 14,095 points.
Analysts said that the sharp drop in the number of new infections in Corona and restrictions imposed on hospitalization in recent weeks have pushed markets to new highs.
However, they cautioned that a relapse cannot be ruled out in the short term if new variants of the Coronavirus cause greater problems or difficulties in distributing vaccines.
The dating app Bumble posted a 7 percent profit, after the stock also rose 63.5 percent in its stock market debut on Thursday. GameStop was up 2.4 percent. The US government has launched an investigation into potential market manipulation of stocks.
Additional purchases of corona vaccines by the US government brought profits to the pharmaceutical companies CureVac (2.1%), Moderna (0.2%) and Pfizer (0.8%). The reservation site Trivago managed to make a profit of 23.6 percent. Chevron Oil Group won, by 0.6 percent.
On the other hand, Disney Media Group lost 1.8 percent, while online travel agency Expedia suffered a loss of more than 2 percent after publishing the quarterly results. Chip maker Nvidia was also forced to back down 1.9 percent after filing complaints to the regulator about the company’s plans to acquire co-maker Arm.
A stronger drop was recorded at cybersecurity company Cloudfare, which, despite better-than-expected numbers, is down nearly 6%.
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