This is what the leading US indexes looked like by closing time on Wall Street on Monday:
- The broad S&P 500 index rose 0.71 percent
- The heavyweight Dow Jones Industrial Average finished 0.27 percent higher
- The Nasdaq Tech Index rose 1.31 percent
The price of oil decreased significantly during the trading day. At 22:00 Norwegian time, North Sea oil burn is down nearly eight percent and is trading around $109 a barrel. The drop comes on the heels of the new coronavirus restrictions in Shanghai. This has led to fears of weak demand for oil, according to the Dow Jones Index.
On Friday, the stock market week closed with mixed results for the US indices. The S&P 500 and Nasdaq were up nearly 1%, while the Dow Jones closed slightly lower than the previous week.
On Friday morning, US President Joe Biden and European Commission President Ursula von der Leyen presented a working group to reduce Europe’s dependence on energy from Russia.
With this, the European Union and the United States have agreed to an additional supply of gas from the United States, and the United States will supply the European Union with at least another 15 billion cubic meters of liquefied natural gas (LNG) in 2022.
Tesla will split the stock
On Monday, it was announced that Tesla will seek shareholder approval for a stock split and thus increase the number of shares.
A stock split won’t change the company’s overall market value, but it will automatically lower the price of each share.
Tesla shares rose five percent at the opening, ending the day eight percent higher.
The company is set to increase by about 85 billion in market capitalization, Bloomberg reports. That’s more than Ford’s full market value.
The stock split is approved by the board of directors, and the shareholders will vote on it at the company’s general meeting. The last time Tesla implemented a stock split was in August 2020.
Share Gamestop with brine Monday
On Monday, Gamestop stock is on track to its longest winning streak in 12 years, according to Marketwatch.
Over the past 10 days, the stock has doubled significantly. On Monday, Gamestop’s share rose 25 percent.
The war in Ukraine and rising inflation have reduced the demand for iPhones and Airpods. So Apple decided to reduce production of these products, the newspaper wrote Nikki Monday.
The company cut production of the iPhone SE by 20 percent, between two and three million units, from what was originally planned for the next quarter. Airpods orders will also be reduced by more than ten million units by 2022.
Apple shares closed 0.5 percent higher on Monday.
The ten-year-old falls after a clear rise on Friday
The interest rate on US government debt with a maturity of ten years, often called “ten years,” rose to about 2.5 percent on Friday. This is the highest level since May 2019, according to CNBC. On Monday, the 10-year-old hit 2.46 and thus fell by 0.04 percentage points.
The ten-year-old is often referred to as the “world’s hottest interest rate” because it is a reference to many interest rates, but also other financial variables, around the world.
Higher long-term interest rates are often a bad sign for growth companies. Growth share is priced higher than earnings indicate, because investors anticipate growth in the future, often several years in advance. Thus, a rise in the rate of interest in the future will reduce the profits of the developing firms in the long run.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like 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.
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