U.S. stocks rally on tech stocks – zimo News

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The New York Stock Exchange rebounded on Tuesday after the Nasdaq fell for seven straight weeks, boosted by technology stocks and investors interested in penny stocks.

According to the final result, the Dow Jones rose 1.34% to 32,654.09 points. The tech-heavy Nasdaq rose 2.76 percent to 11,984.52. The S&P 500 rose 2.02% to 4,088.85.

Wells Fargo analysts pointed to the return of risk appetite “due to positive news from China” and a more favorable statement from the authorities about the tech group and its market offers.

The analysts also noted that favorable data from the euro zone also played a role, with growth revised up slightly to +0.3% in the first quarter, compared with the first estimate of +0.2%.

Investors also reacted positively to U.S. retail sales data for April, which rose 0.9% as expected, indicating strong demand despite inflation.

But for Gregori Volokhine of Meeschaert Financial Services, the “interpretation of retail sales”, which only reflects a part of more service-oriented US consumption, “is positive because we turn a blind eye to inflation”.

Instead, the portfolio manager focused on executives at Walmart, the largest U.S. retailer, who saw “a split in its customer base, with lower-income earners turning to unbranded essentials to save money.”

“We’re seeing low-income people really starting to suffer from inflation,” which doesn’t bode well for consumption, added the expert, who waited for several stock market rallies to believe it.

The discount supermarket giant was also hit hard on Tuesday, with Walmart shares down 11.38% to $131.35 after a 25% profit cut and a cut in forecasts for the rest of the year.

Short-term (2-year) bond yields jumped from 2.56% to 2.70% following a further hawkish inflation statement from Federal Reserve Chairman Jerome Powell. The 10-year tightening was also smaller, again approaching the 3% mark at 2.98%.

In a conversation with The Wall Street Journal, Powell said the agency would significantly tighten monetary conditions until there was “clear” evidence that inflation was slowing.

If inflation doesn’t decelerate fast enough, “then we’re going to have to think about more aggressive action,” he said.

Another indicator that reassured investors was that the pace of U.S. industrial production in all categories picked up in April, with auto production in particular rising sharply for the second straight month.

Total output rose 1.1% from March, according to Federal Reserve data released on Tuesday.

That was well ahead of expectations, as analysts expected a slowdown in March’s 0.9% gain, compared with expectations for a 0.5% gain.

Almost all sectors of the S&P ended higher, notably Information Technology (+2.91%), Materials (+2.86%) and Banking (+2.69%).

Twitter, on the other hand, lost several times in a row, while the social network was at the center of talks with Tesla boss Elon Musk, in the midst of a battle for its takeover, which ended in the green (+2.49% to $38.32) ).

The EV maker’s title rose 5.14 percent to $761.61.

DIY chain Home Depot (+1.68% to $300.95) announced an upward revision to its full-year sales forecast (+3%).

Citigroup securities were highly sought after (up 7.56% to $51.05) after billionaire Warren Buffett’s Berkshire Hathaway took a large stake in the bank.

The fund revealed that it bought about 55 million shares of Citigroup for nearly $3 billion.

United Airlines surged 7.88% to $46.97. UAL will be able to fly its 52 Boeing 777s again after receiving the green light from the Air Regulator (FAA).

The company also said it expects travel demand to grow by 25% compared to 2019, before the pandemic.



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