NEW YORK (awp international) – On Tuesday, US equity markets followed their strong start into October and rallied significantly again. Hopes for a less aggressive interest rate policy by the US Federal Reserve have created a buying mood among investors. “The optimism appears to have returned to the market in October,” commented Pierre Veyret of broker Activtrades.
The Dow Jones Industrial broke the much-noted 30,000 point mark in early trading for the first time since September 22. Eventually, the leading US index gained 2.80 percent to 30,316.32 points, expanding its winning streak to about five and a half percent since Monday.
The S&P 500 was up 3.06% to 3790.93 points on Tuesday. The market-wide index, including Monday, recorded its strongest two-day rise since April 2020. The Nasdaq 100 tech index rose 3.14% to 11,582.54 points.
From a business perspective, the news of the day came from tech billionaire Elon Musk. The Tesla boss now wants to complete the multi-billion dollar acquisition of the online service Twitter. Musk confirmed this Tuesday in a mandatory statement to the US Securities and Exchange Commission. In this way, the legal dispute over the one billion euro deal could be avoided shortly before the expected legal proceedings.
In a letter, Musk suggested the deal be completed at the originally agreed purchase price of $ 54.20 per share, his lawyers wrote. After the first speculations about this spectacular turnaround in the acquisition of approximately $ 44 billion arose in the course of negotiations, Twitter shares were initially suspended from trading. After the recovery, they were up 21% at a six-month high and closed more than 22% at $ 52.
Elsewhere, airline stocks were among the largest daily earnings. American Airlines grew by 8.6%, Delta Air Lines by 8.8%, Jetblue Airways by 8.3% and United Airlines by 7.7%.
Stocks from Amazon were also interesting with a 4.5% increase. Jefferies Research analyst Brent Thill pointed out in a study that investors would get the traditional online trading business for free at the current price level. The group’s market valuation is currently below the value of the other divisions, according to Thill.
Ford shares were up 7.8% following the announcement of September sales figures. Competitor General Motors’ stock gained 8.9%.
Fedex shares rose 5.1%. The logistics group had announced that it had reached an agreement with Morgan Stanley for the repurchase of its own shares for a value of 1.5 billion US dollars.
The euro significantly extended its lead over European assets in US trade and was last trading at $ 0.9987. The European Central Bank had set the reference rate at 0.9891 (Monday: 0.9764) dollars. The dollar therefore cost 1.0110 (1.0241) euro.
US government bonds rose moderately. The 10-year Treasury futures contract (T-Note Future) recently rose 0.12% to 113.34 points. On the other hand, the yield on 10-year government bonds fell to 3.64 percent / y / e
