June 26, 2022

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Strong rise in US stock markets

Strong rise in US stock markets

Thursday provided a rise in the major US indexes for the second day in a row.

When trading on Wall Street stopped at 22.00 Norwegian time, it looked like this on Wall Street:

  • The Dow Jones index rose 1.6 percent
  • The Nasdaq rose 2.7 percent
  • The S&P 500 rose 2.0 percent

Major US indices have been in low territory for nearly two months, with a heavy focus on high inflation, but they may now have reversed. But only for purely technical reasons.

“Our view is that the stock market rally this week is technical in nature, not a change of direction,” Zachary Hill, director of portfolio strategy, of Horizon Investments, told CNBC.com.

He continued, “It is too early to shift the focus from inflation to growth.”

The market also had to absorb comments from the Chinese PM about the economy not developing quite as desired. Investment banks UBS and JPMorgan Chase both lowered their forecasts for economic growth in China in 2022, as a result of the sweeping Corona measures, he wrote CNBC.

Buy a cloud storage company

During the trading day, it was also announced that computer chip maker Broadcom has plans to buy cloud storage company VMware in an agreement that values ​​VMware at $61 billion, or about 580 billion kroner. Broadcom shares rose 3.6 percent on the news, while VMware rose 3.1 percent.

Shortly before the stock market opened on Thursday, official figures showed that US gross domestic product declined again in the first quarter. On an annual basis, the decline was 1.5 percent, slightly more than the Dow Jones estimate of 1.3 percent, CNBC reported.

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Musk offers more shares in Twitter bid

Quarterly results presented by listed companies after US stock exchanges closed on Wednesday showed a mixed picture. China’s e-commerce group Alibaba, which did not deliver as expected, is still up 14.8 percent despite the company’s results showing growth is stabilizing. The company will also not provide an estimate of the outcome in the current year due to the covid-19 boom in China.

The Macys department store rose 19.3 percent after the company lifted guidance for 2022 and had better-than-expected first-quarter results.

Twitter ended up 6.4 percent after Elon Musk adjusted funding for his acquisition of the microblog. Musk has switched from financing parts of the acquisition with a loan tied to his stake in Tesla, rather than putting more stock on the table. (Conditions)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.