It is interpreted as a possible indication that high inflation in the US may finally be slowing, after several triple hikes made by the US central bank.
All major indices on Wall Street have risen significantly since the beginning of Tuesday, and during the trading day the rally accelerated. This is how it looked at closing time:
- The Dow Jones rose 2.80 percent
- The S&P 500 Index is up 3.06 percent
- The Nasdaq Composite Index is up 3.34 percent
The so-called ISM index is considered an important indicator of US industrial production, and new figures on Monday showed that the index fell from 52.8 to 50.9.
That marks the lowest industrial activity since May 2020, according to CNBC.
DNB Markets believes the numbers can explain some of the optimism in the stock market that started the following week September bullets.
Lower growth and inflation give less reason for the Fed to continue sharp rate hikes, according to DNB Markets’ morning report on Tuesday.
Twitter gathering on Musk news
Today’s clear winner in the US stock market is Twitter stock, which rose 22.28 percent to $52 per share. News that Elon Musk still intends to buy the company.
Twitter first accepted Musk’s offer of $54.20 per share in April — but Musk called off the acquisition, claiming that Twitter had violated key terms of the deal, including the number of fake users. Twitter has consistently denied the allegations and confirmed that the agreement applies.
It was Bloomberg News that first reported on Tuesday that Musk is moving forward with acquisition plans at the price that was agreed in the spring. Several international media reported that it was confirmed, on Tuesday evening, through a message from Musk.
Soon after – and just before the stock market closed – trading in Twitter’s stock resumed and quickly rose further to $52 per share. In after-market trading, Twitter was trading at levels between $51 and $52 per share.
Tuesday’s US stock market developments followed a broad rally in Europe and follow a global rally on Monday as well, with all three of Wall Street’s major indexes rising above 2 per cent.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using links that lead 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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