As Evergrande’s concerns fade, the Dow closes at a new high.

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As Evergrande’s concerns fade, the Dow closes at a new high.

The Dow concluded at a new high on Friday, concluding a solid week for US stocks, while European and Asian stocks mainly recovered as fears of contagion from Evergrande, the troubled Chinese property behemoth, faded.

Despite the fact that the S&P 500 and the Nasdaq both fell on Friday, all three major Wall Street indices gained for the week as a result of mostly positive corporate earnings, which have helped to alleviate inflation fears.

“While almost every firm is talking about supply chain challenges,” said Briefing.com analyst Patrick O’Hare, “you’re not seeing a lot of companies talking about how demand is declining.”

Investors have been reassured, according to O’Hare, by assurances that corporations have been able to pass on price increases to consumers while maintaining profit margins.

However, some companies have experienced a severe sell-off after disappointing investors with poor news.

Snap’s stock dropped 26.6 percent after it disclosed a hit from Apple’s decision to tweak its privacy settings, making it more difficult to target ads. Twitter and Facebook, two other social media companies, both lost around 5% of their value.

Evergrande delivered a significant offshore interest payment a day ahead of a weekend deadline, preventing a default for the time being, according to Chinese state media.

The financial crisis at one of the country’s largest property developers, which is buried in $300 billion in debt, has shattered investor confidence and stoked fears of a wider economic downturn.

Evergrande’s stock rose more than 4% in Hong Kong, after a plunge of more than 12% the day before due to the company’s news that the planned sale of its property services subsidiary had fallen through.

The payout aided in the improvement of mood in Asian and European equity markets.

Last month, stocks fell as investors became concerned about chronic supply chain issues that are fueling inflation and forcing monetary policymakers to begin to reduce economic stimulus measures.

However, corporate earnings have mostly exceeded expectations, with many companies able to pass on price increases while maintaining profitability.

According to ThinkMarkets analyst Fawad Razaqzada, the records likely reflect investors’ belief that supply constraints and inflation spikes are just temporary, and that central banks will not tighten monetary policy too much as a result.

“Central banks would not want to suffocate economic development by being overly active in tightening their policies, especially given recent evidence of a sluggish recovery,” he said.

New York – The Dow Jones Industrial Average is up 0.2 percent to 35,677.02. (close)

S&P 500: DOWN 0.1 percent at 4,544.90 in New York. The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.

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