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Thursday provided a rise in the US key indices for the second day in a row.
When trading stopped on Wall Street at 22.00 Norwegian time, it looked like this on Wall Street:
- The Dow Jones ended up 1.6 percent
- Nasdaq rose 2.7 percent
- The S&P 500 climbed 2.0 percent
The key US indices have been in declining terrain for almost two months, with much focus on high inflation, but now it may have reversed. But only for purely technical reasons.
“We see this week’s stock market rally as technical in nature, and not a change in trend,” Portfolio Strategy Manager Zachary Hill of Horizon Investments told CNBC.com.
– It is too early to shift the focus from inflation to growth, he continued.
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The market was also to absorb comments from China’s prime minister about an economy that is not developing quite as desired. The investment banks UBS and JPMorgan Chase have both downgraded their projections for economic growth in China in 2022, as a result of the extensive corona measures, wrote CNBC.
Buys a cloud storage company
During the trading day, it was also announced that the computer chip manufacturer Broadcom has plans to buy the cloud storage company VMware in an agreement that values VMware at 61 billion dollars, or around 580 billion kroner. Broadcom rose 3.6 percent on the news, while VMware climbed 3.1 percent.
Shortly before the stock market opened on Thursday, official figures showed that gross domestic product in the US fell back 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.com reported.
Musk offers more equity in the Twitter bid
The quarterly results provided by the listed companies after the US stock exchanges closed on Wednesday showed a mixed picture. The Chinese e-commerce house Alibaba Group, which did not deliver as expected, still ended up 14.8 percent despite the company’s results showing that growth is leveling off. The company will also not give an estimate for the result in the current year due to the boom of covid-19 in China.
The department store Macys climbed 19.3 percent after the company lifted guidance for 2022 and delivered better results for the first quarter than expected.
Twitter ended up 6.4 percent after Elon Musk modified the financing of his acquisition of the microblog. Musk has gone from financing parts of the acquisition with a loan linked to its share in Tesla, and rather putting more equity on the table. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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