Wall Street remains at record levels: economic data, interest rates and AI support hopes, but Intel is dampening the mood. Dow closes 0.16% higher.

Wall Street remains at record levels: economic data, interest rates and AI support hopes, but Intel is dampening the mood. Dow closes 0.16% higher.

According to a report from www.tagesschau.de,

Wall Street remains at record highs on robust economic data, interest rate and AI hopes. However, weak business results from chip manufacturer Intel have dampened the mood. The Dow Jones Index and the S&P 500 Index reached new record highs, but were unable to maintain them over time. The Nasdaq lagged, largely due to disappointing forecast from chipmaker Intel, whose shares fell 11.9 percent.

Despite Intel's burden on the chip sector, robust economic data was able to contain share price losses. Investors were pleased as data showed that the US economy is not in danger of slipping into recession despite high interest rates. Consumers' personal spending rose 0.7 percent in December, while U.S. household incomes rose 0.3 percent. This indicates that the US economy will continue to grow at a high rate. The core PCE index, a measure of inflation, fell to an annual inflation rate of 2.9 percent in December.

Experts expect that the US Federal Reserve led by Jerome Powell will hold interest rates for the fourth time in a row. However, monetary policy easing at further monetary policy meetings is considered likely. The DAX also recorded growth, while the MDAX lagged behind the US stock exchanges due to the lack of technology reference.

The news situation contrasts with the current prices on the stock market. Corporate balance sheets and economic data appear inconsistent at best. Consumer sentiment in Germany also suffered a setback at the beginning of the year.

The euro has made up a large part of its slight losses from the previous day and was recently trading slightly higher in US trading. Oil prices rose sharply after previously lackluster trading, triggered by an attack by Houthi rebels on a British oil tanker in the Gulf of Aden. This led to increasing transport costs due to the bypassed sea routes.

The RWE share was at the bottom of the DAX despite good profit figures last year, as the outlook for 2024 did not convince investors. Despite declining inventory levels in the USA and a sharp fall in crude oil production, oil prices rose due to weather-related factors and increasing production in countries outside the OPEC oil cartel.