Snapchat and Tesla asked
Inflation data gives Wall Street a big boost
November 14, 2023, 10:47 p.m
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Inflation in prices in the USA has recently weakened, and there is relief on Wall Street: the era of interest rate increases appears to be over. The US stock exchanges are turning significantly into the black, with investors particularly taking advantage of tech stocks.
Stock market investors’ interest rate optimism following a decline in US inflation is driving Wall Street strongly. The Dow Jones Index the standard values closed 1.4 percent higher on Tuesday at 34,827 points. The technology-heavy one Nasdaq advanced 2.4 percent to 14,094 points. The broad one S&P 500 gained 1.9 percent to 4495 points.
“We can now say goodbye to the era of interest rate hikes,” said Brian Jacobsen, chief economist at asset manager Annex. Investors may now turn to betting on when Fed Chairman Jerome Powell will begin cutting interest rates. “The interest rate pause began in July. Now we have to see how long Powell can keep interest rates at this level.” The phase with consistently high interest rates lasted five months after the US central bank raised interest rates from three to six between 1994 and 1995.
In terms of individual stocks, the announcement of a partnership boosted shares Snapchat and Amazon. The papers rose by 7.5 and 2.2 percent respectively. In the future, US users will be able to buy some products directly via the photo messenger service Snapchat, the online retailer announced.
Also increased prices for the TeslaModels 3 and Y in China made investors optimistic. The shares of the US electric car pioneer rose by more than six percent. Record sales of electric vehicles in October in the People’s Republic also provided confidence despite the expiration of subsidies. Tesla also benefited from speculation that interest rates would fall again next year after the US inflation rate fell more than expected in October.
The shares of were also in demand Home Depot, which climbed 5.4 percent. The US hardware store chain somewhat absorbed a trend towards smaller home improvement projects in the third quarter. Sales fell by three percent to $37.7 billion, while earnings per share fell by almost ten percent to $3.81. But analysts had expected an even weaker performance, with a 3.3 percent decline in sales and a profit of $3.76 per share.