Investors on Wall Street sent the indices on a roller coaster

After a friendly start, investors on Wall Street were undecided and sent the indices on a roller coaster ride. In late business, statements by central bankers helped the Dow Jones index to a small plus. Fed Governor Lael Brainard said inflation would ease after the economy recovers. After significant initial gains, economic data had reinforced the common concerns about inflation and the turnaround in interest rates. With the ISM index, which is above the forecast, the price component turned out to be particularly high, which further fueled fear of inflation. In contrast, sub-data such as production apparently reflected the scarcity of intermediate products and the lack of availability of qualified workers. The Markit purchasing managers' index for manufacturing was also stronger than expected. The Dow Jones index closed 0.1 percent higher at 34,575 points, the S&P 500 and the Nasdaq Composite fell 0.1 percent each. For 2,404 (Friday: 1,972) price winners there were 976 (1,366) losers, while 111 (127) titles went unchanged from trading. Initially, the positive mood was driven by increasing economic optimism. The positive development of the corona pandemic in the USA contributed to this. While the new infections have dropped to their lowest level since March 2020, the authorities reported further vaccination successes. Over 62 percent of American adults have been vaccinated at least once. In light of these data, investors are expecting the economy to pick up further. On the foreign exchange market, the US dollar showed slight weakness, the dollar index lost 0.2 percent. Analysts currently do not believe the greenback has much potential and see it on the losing side in the short term. Since the Fed will not react in the short term, even with good data, rising inflation is currently more of a burden for the dollar, it said with a view to negative real interest rates. The rising inflation expectations can also be seen in the bond market, where the yield on ten-year US Treasuries climbed by over 3 basis points to 1.61 percent. The gold price fell below $ 1,900 an ounce after inflation worries had initially supported. With the statements of the central bankers, this fear disappeared again.