US stock market indices rose on Friday, after the week was largely characterized by inflation fears and a stock market slump. Meanwhile, the week is ending in full swing, for the first time in six weeks, he writes CNBC.
This is what it looks like on Wall Street at the close at 22:00 NST Friday night:
- The Dow Jones Industrial Average rose 0.5 percent.
- The broad S&P 500 index is up 0.72 percent.
- Heavy tech stock Nasdaq rose 1 percent.
In the middle of the week, stock markets suffered a setback after inflation figures showed The highest price growth in 30 years in the US.
The Nasdaq tech index in particular fell sharply on Wednesday. This is due to the fact that when inflation expectations rise, long-term interest rates also naturally increase, which “punishes” expensive high-growth companies, such as technology companies, as their earnings advance further.
On the other hand, technology stocks are leading the rise on Friday.
It’s as if we’re in a period of indomitable optimism, says Liz Young, who is responsible for Sophie’s investment strategy, Bloomberg.
Autumn Tesla continues…
Electric vehicle companies Rivian and Tesla have received a lot of attention in the US media this week. But while Rivian has stunned many with a sharp rise in value, Tesla headlines have been dominated by the CEO’s sales stunt and the ensuing slump in stocks.
The stock has seen a sharp fluctuation in recent days, after a Twitter stunt this weekend in which CEO Elon Musk allowed Twitter users to vote on whether to sell 10% of shares in Tesla. When the voting deadline passed, the result was clear: Of the 3.5 million votes cast, 57.9 percent said yes to the sale.
This means that Musk can sell shares worth NOK 180 billion. Elon Musk is said to have sold shares worth around NOK 49 billion during the week, according to The Wall Street Journal.
The stock first fell 15 percent on Monday and Tuesday, while it was not clear if Musk had begun selling any of the shares. The stock price recovered somewhat on Wednesday and Thursday before declining on Friday. Tesla shares fell 2.86 percent on Friday.
Rivian’s stock market hack made Tesla CEO and founder Elon Musk turn to Twitter again:
“I hope they can achieve high production and zero cash flow. This is the real test,” he wrote on Twitter.
… while the opponent was driving his car
Rivian’s market capitalization is now $100 billion, according to CNBC, after rising nearly 60 percent on the stock exchange since its debut Wednesday. Among US car manufacturers, only Tesla now has a higher value than the Rivian.
For comparison, two days after its 2010 IPO, Tesla had a market capitalization of $2 billion in 2010. Now Rivian CEO RJ Scaringe owns a stake in Rivian that alone is worth the same value, according to CNBC.
At the same time, Rivian hardly managed to sell its first cars. The first vehicle was launched in September, and the company plans to launch its first electric SUV in December. The electric car company has big investors behind it like Amazon and Ford, and differs from the competition in targeting electric SUVs and “pickups.”
Rivian shares rose 5.6 percent on Friday.
industrial giant divisions
Among other US stock market news on Friday, industrial giants Johnson and Johnson received the most attention, after the company announced it would split into two listed companies: a vaccine, drug development and medical aid company, and one for cosmetics. and dentistry and other consumer-oriented products.
The company’s share rose by 1.2 percent in the stock market after the news. The Johnson and Johnson names will be held by the pharmaceutical business, while the name of the consumer-oriented business has yet to be found. According to the company, the split will be completed within 18 to 24 months.
News of the divorce from Johnson and Johnson comes just days after General Electric, once considered the world’s largest company measured by value a few decades ago, announced that the company would be split into three. General Electric initially rose three percent in the stock market, but the share price fell again in the days after the news. (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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