This is how the main indicators in the US ended on Monday:
- The heavy Dow Jones Industrial Average rose 0.26 percent
- The broad S&P 500 index rose 0.18%
- The Nasdaq Technology Index rose 0.63 percent.
After October became Wall Street’s best month so far this year, all indexes set new records. But the Nasdaq tech index rose the most on the first trading day of the month, with the help of Tesla. Tesla stock closed nearly nine percent on Monday. The stock is now trading at $1,208 per share.
Last week, the electric car manufacturer from California crossed the magic threshold of $1,000 billion in market capitalization. It happened after car rental company Hertz announced that it would buy 100,000 Teslas.
Tesla’s stock is now up eight consecutive trading days, which means founder and principal owner Elon Musk tops the list of the world’s richest people by an increasing margin. On Monday, Musk was three times as rich as investor legend Warren Buffett, according to Bloomberg estimates.
Meme’s arrow is back
Among today’s winners, we find the so-called meme share GameStop. A meme stock is a stock that has been bred on social media or online forums by private investors, which often has the advantage of being highly restrictive. Short selling simply means betting that the stock price will fall.
GameStop shares rose 9 percent Monday and are nearing their best day since August, according to Bloomberg.
Earlier this year, GameStop saw a violent recovery driven by large groups of small savers from the online Reddit forum, among others. The motive was initially to inflict heavy losses on Wall Street hedge funds that bet on lower prices by short trading.
Interest rate meeting pending
This week, many economists will turn their attention to the US Federal Reserve’s interest rate meeting on Wednesday. Governor Jerome Powell is expected to announce cuts in bond buying and the rate at which the central bank will cut crisis support programmes. Rising prices and wage growth in the US mean that macroeconomists now believe in more frequent jumps in interest rates than previously assumed..
In addition, there are the latest jobs numbers for October, which are usually a strong indicator of the state of the US economy.
Earnings season saw October, but many companies delivered strong quarterly numbers despite global supply challenges. About half of the companies listed in the S&P 500 have reported their quarterly figures and more than 80 percent of those analysts have beat analyst estimates, according to Refinitiv. CNBC.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We want you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”