US money glut pushes stock exchanges to record high

US money glut pushes stock exchanges to record high. The broad benchmark index S&P 500 rose on Wednesday by up to 0.6 percent to a record high of 4,393.68 points. The Dow Jones and the technology-heavy Nasdaq also rose slightly, but initially missed new highs. US government bonds were also in demand. This pushed the yield on trend-setting ten-year bonds down to 1.364 percent. "There was a tug-of-war in the market between concerns about high inflation and concerns about tightening monetary policy," said Randy Frederick, manager at brokerage firm Charles Schwab. "As long as Fed Chairman Jerome Powell says he won't raise rates, stock markets will do well." During a hearing before the US Congress, Powell reiterated that the current price pressure is temporary and will ease "in the coming months". In addition, the labor market is still "a long way" from the level at which his house will reduce monetary support for the economy. In line with the development of interest rates and the Powell statements, the US dollar fell noticeably after the sharp rise from the previous day. The dollar index fell 0.4 percent. The euro recently rose to around $ 1.1836 from recent lows below 1.1775. According to initial information, there were 1,413 (Tuesday: 831) course winners and 1,890 (2,513) losers on the Nyse. 128 (124) titles closed unchanged. On the corporate side, the balance sheet season continued with business figures from the major banks Bank of America, Wells Fargo and Citigroup. Similar to Goldman Sachs and JP Morgan, who published their figures on Tuesday, these financial institutions also benefited on the profit side from the reversal of provisions that had been set up during the pandemic. However, the income side caused disappointment, for example at Bank of America (-2.5%). Wells Fargo (+ 4.0%), on the other hand, posted higher revenues than expected. Citigroup (-0.3%) exceeded market expectations, with revenues falling at least less than expected. At Blackrock (-3.1%), good was apparently not good enough, because the asset manager's quarterly figures are actually good, traders tried to explain the price reaction. In contrast, the papers of American Airlines, which were more expensive by a good three percent, were in demand. The airline announced the first positive cash flow in a quarter since the outbreak of the coronavirus pandemic. Competitor Delta Air Lines returned to profitability in the past quarter. In the wake of price losses in the entire industry, Delta shares were unable to maintain their initial profits and lost 1.6 percent. Oil prices went down significantly, by up to 3.4 percent. They moved in the area of tension between a compromise within Opec + and new inventory data from the USA. As expected, the latter fell again for crude oil, and more clearly than expected. However, the supply of gasoline rose and a further increase in weekly oil production in the USA to a 14-month high was reported.