Dow Jones, Nasdaq, S&P 500: Wall Street closes inconsistently


Wall Street

Traders talk on the trading floor.

(Photo: AP)

New York At the start of the trading week before Easter, US investors held back on stocks. The US standard value index Dow Jones closed on Monday a moderate 0.3 percent higher to 33,171 points. The technology-heavy Nasdaq, however, lost 0.6 percent to 13,059 points. The broad S&P 500 lost 0.1 percent to 3971 points.

Investors were worried about the troubled situation of the US hedge fund Archegos Capital. According to the Bloomberg news agency, Archegos had to sell more than $ 20 billion worth of shares on Friday due to margin calls. The Wall Street Journal even reported sales of $ 30 billion. According to insiders, the default is also costly for some major banks.

The problems of the hedge fund threaten the Swiss Credit Suisse and the Japanese investment bank Nomura with losses of billions. The news caused massive uncertainty among investors on the stock exchange. Credit Suisse shares plummeted 14 percent in Zurich, while Nomura shares plummeted 16 percent in Tokyo. The second-largest Swiss financial institution said that a major hedge fund had failed to make additional contributions – so-called margin calls. Since the investor did not inject any money, Credit Suisse and other banks are in the process of liquidating securities positions.

In the US, shares in Morgan Stanley fell about three percent after a report by the Financial Times on massive share sales. Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Wells Fargo, which lost up to 3.3 percent, also came under pressure. Investors feared that more share sales were imminent.

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“This incident reminded markets of the dark side of leverage and likely resulted in some market participants reducing their exposure to near record highs in order to avoid serious losses should sales expand,” said Marios Hadjikyriacos, investment analyst at online Broker XM.

Glossary: ​​The most important information about hedge funds

Meanwhile, Boeing shares rose 2.3 percent after a major order. Southwest Airlines ordered 100 737 MAX planes, encouraging investors to join the Airbus rival. The first machines are said to be delivered in 2022.

Bitcoin was also in demand. The oldest and most important cyber motto again targeted the $ 60,000 mark and rose by up to eight percent to $ 58,400. The fact that the credit card provider Visa opened another door to the use of cryptocurrencies in general payment transactions was well received by the market. The US company announced on Monday that it would in future accept the use of the cyber currency USD Coin for payments.

The oil price initially fell slightly after the giant container ship “Ever Given”, which ran aground in the Suez Canal and which had blocked the important shipping route for around a week, was released. The Brent variety from the North Sea then showed little change at 64.62 dollars per barrel (159 liters). The canal operator SCA announced on Monday that traffic in the waterway, which is immensely important for global shipping, would be resumed. However, the disruptions in the global shipping industry could take weeks or possibly months to be resolved, leading container shipping companies said.

More: Troubled US hedge funds – Credit Suisse and Nomura warn of billions in losses.

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Dow Jones Nasdaq Wall Street closes inconsistently


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