It is being interpreted as a possible sign that skyrocketing inflation in the US may finally slow down after several triple hikes by the US central bank.
All major Wall Street indices have risen sharply since the start of Tuesday and throughout the trading day the upside has accelerated. Here’s what it looked like at closing time:
- The Dow Jones was up 2.80%.
- The S&P 500 is up 3.06%.
- The Nasdaq Composite is up 3.34%.
The so-called ISM index is considered an important indicator for American industrial production, and new data showed Monday that the index fell from 52.8 to 50.9.
This indicates the lowest industrial activity since May 2020, according to CNBC.
DNB Markets believes the figures may explain some of the stock market optimism that began the week after 1am leaden month of September.
– Lower growth and inflation give the Fed less reason to continue with very aggressive interest rate hikes, DNB Markets points out in Tuesday’s morning report.
Musk News Twitter Rally
The clear winner of today’s US stock market is Twitter’s share, which rose 22.28% to $ 52 per share on the 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 later canceled the acquisition, claiming Twitter had violated key terms of the deal, including the number of fake users. Twitter has consistently denied the allegations and said the deal applies.
It was Bloomberg News that first reported Tuesday that Musk is now pursuing acquisition plans at the price agreed in the spring. It was confirmed by a letter from Musk on Tuesday evening, several international media reported.
Shortly thereafter – and just before stock exchange closing time – trading of the Twitter stock resumed and quickly climbed further to $ 52 per share. In post-market trading, Twitter traded at levels between $ 51 and $ 52 per share.
Stock market developments in the US on Tuesday follow a broad rally in Europe and also come after a global rally on Monday, where the three key Wall Street indices all rose more than 2%.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via links, which lead directly to our pages. Copying or other forms of use of all or part of the content may only take place with prior written permission or as permitted by law. For additional terms look at her.
