The American tech fair Nasdaq closed for the second consecutive day with a nice profit. However, vehicle manufacturer Nikola plunged more than 8% because of a possible fraud investigation by the SEC.
The Dow Jones index closed 0.01% higher. Techbeurs Nasdaq rose 1.2%. The broadly composite S&P 500 index climbed 0.5%.
Investors‘ eyes were on the US central bank umbrella, the Federal Reserve, which began its two-day policy meeting today. It is not expected that there will be any changes in US central bank policy this week. Investors will therefore be particularly interested to hear the explanation from Fed Chairman Jerome Powell on Wednesday. Particular attention will be paid to comments on new steps the Fed can take against the corona crisis.
Technology giant Apple (+0.2%) was in the spotlight. Apple held a virtual event today, presenting new smartwatches, but no new iPhones.
In addition, the SEC is said to be investigating allegations of deception, fraud and deception by electric vehicle manufacturer Nikola (-8.3%). Investor Hindenburg Research accuses Nikola of fraud by, for example, providing incorrect information about the capabilities of his electric trucks. Nikola denies and says that Hindenburg, as a ‘short seller‘ by publishing a misleading report, wants to manipulate the share in order to take advantage of a fall in the share price, following the sharp rise in the share price earlier.
Cruise company Carnival (-10.8%) announced its intention to issue a further $1 billion worth of new shares. In addition, Carnival anticipates a net loss of $2.9 billion in the third quarter. The company is in the process of reducing fleet capacity due to the severe impact of the corona crisis on the cruise industry.
Facebook increased 2.4%. The social media company was initially under pressure when Kim Kardashian called on her followers on Twitter to pause like her on Facebook and Instagram. However, Facebook’s course then picked up again.