January 30, 2023

ModularPhonesForum

Complete News World

Rise on Wall Street – E24

US stock indices fluctuated in trading on Friday, but ended up positive. Tesla stock fell further after yesterday’s crash.

The US stock market is on its way out of a turbulent year in the stock market.
published:

Wall Street was swinging between plus and minus during the trading session on Friday.

This is what it looks like for the leading indices at the end of the market:

  • The S&P 500 collective index rose 0.59 percent.
  • The Nasdaq Tech Index rose 0.21 percent.
  • The Dow Jones Industrial Average rose 0.54 percent.

Sam Stovall, chief investment strategist at CFRA Research, told CNBC that stock market trading before the Christmas holidays can often be more volatile than usual due to lower volume.

– It could last in the short week between Christmas and New Year’s, he adds.

It’s heading into a weak month for the stock market, and in December the S&P 500 lost about six percent. Despite Friday’s rally, the Composite Index posted its third consecutive week of weekly declines.

Read on E24+

Talk about a turnaround at Seadrill

Weak inflation

The fight against skyrocketing prices has caused central banks in many parts of the world to sharply raise interest rates in the past year. US inflation has eased recently, but it’s still well above target.

Earlier on Friday, personal consumption expenditures (personal consumption expenditures) inflation figures were released, which ended at 5.5 percent in November compared to the same month a year ago, according to the latest figures from the US Agency for Economic Analysis. According to Bloomberg, this is in line with what economists had previously expected.

See also  I think the commodity boom gives a result on the Oslo Stock Exchange - E24

Core personal consumption expenditures inflation, which subtracts food and energy prices, ended at 4.7 percent. Up front, core inflation was expected to end at 4.6 percent.

The number is the preferred inflation target for the US central bank, the Federal Reserve, according to Bloomberg. The base PCE is often crucial when the central bank sets interest rates.

The US central bank raised interest rates again last week, this time by 0.5 percentage points. It has taken the US interest rate range to 4.25-4.50 per cent. Stocks mostly pointed lower on Wall Street after the interest rate decision.

Read also

US inflation moderated in November

Tesla swerved

Tesla stock was down about three percent in early trading on Friday, and after much pulling back, the result was a drop of 1.76 percent. Thus, the electric car stock recorded its sixth consecutive day of decline — the longest losing streak since March 2020, according to Bloomberg.

The share was among the sharpest decliners on Thursday, down 8.8 percent.

The electric vehicle maker on Thursday offered a $7,500 rebate on its Model Y and Model 3 models to customers who get the car before the new year. The discount corresponds to just under NOK 75,000 at today’s exchange rate.

The rebate is meant to match the expected tax rebate Americans will receive when purchasing an electric vehicle starting in January, when there are changes to electric vehicle incentives, according to Bloomberg. Thus, Tesla’s move will make it more attractive to actually get the car this year.

Tesla shares have had a rough year, down more than 64% since the new year. It has drastically reduced CEO and owner Elon Musk’s fortune, dethroning him as the world’s richest person.

See also  More expensive than beer

The fall has also been difficult for stocks, at the same time Musk acquired Twitter. Tesla’s market capitalization has more than halved since the end of September, and is down about 39% since the Twitter acquisition.

Ten analysts have lowered their price target for Tesla since last week, according to Bloomberg.