June 6, 2023


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Big rise on Wall Street

Big rise on Wall Street

The three major indices on Wall Street are defying the political tension prevailing in the past few days, which has arisen in the financial markets due to skepticism that Chinese President Xi Jinping strengthened his position over the weekend. Now macro signals are also being interpreted to mean that the Fed is done with them Rising pricesAccording to Reuters.

On closing at 22:00 Norwegian time, the three central indicators looked like this:

  • The technology-heavy Nasdaq rose 2.2 percent
  • The Dow Jones Industrial Average rose 1 percent
  • The broad S&P 500 index rose 1.6 percent

The rally was supported by two main factors, according to an investment strategist who spoke to Reuters:

A combination of low interest rates and a return of investors to believe the Fed can turn around, due in part to signals from Fed spokesmen, as well as economic data that speaks volumes for the same, investment analyst Ross Mayfield tells Reuters.

If Mayfield is right, it means a change of course in the market. Recently, fears of recession and inflation have affected the US market. Americans Interest rates are now at their highest since the financial crisis In 2008/09, making it more attractive for investors to move their money from risky stocks to safe government securities.

However, on Tuesday it may seem as if the ten-year-old American is about to stop rising.

Falling bond yields contributed to the rally in stocks on Tuesday. The interest rate on 10-year US government debt, also known as 10-year bonds, ended at around 4.1 percent.

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The ten-year rate is often referred to as “the most important interest rate in the world” because it is a reference for many interest rates, but also for other financial figures around the world.

Google owner disappointed

Ahead of US stock markets open on Tuesday, Coca-Cola and General Motors released their third-quarter financial reports. The numbers were better than investors and analysts had expected, and stock prices rose significantly. The Coca-Cola Company ended the trading day with a 2.4 percent increase, and General Motors shares rose 3.6 percent.

After the stock exchanges closed, Microsoft and Google subsidiary Alphabet released their results for the previous quarter. In the stock market, investors seemed to raise their expectations for the two companies. Microsoft’s stock price rose about one percent, but Rise after the numbers are released. Alphabet fell sharply in the aftermarket trade after Disappointing result in the third quarter.

Apple and online shopping giant Amazon will present third-quarter results on Thursday.

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