Wall Street is in the black
Twitter lets investor fantasies flourish
4/25/2022, 10:49 p.m
Adventurous Twitter sale gives Wall Street a boost. Investors shake off their worries for a moment at the start of the week. But the war in Ukraine, the lockdown in Beijing and fears about interest rates have not been banned.
After volatile trading, Wall Street ended the week in positive territory. Of the Dow Jonesindex closed 0.7 percent higher at 34,049 points S&P 500 traded 0.6 percent higher. The tech-heavy one Nasdaq Composite gained 1.3 percent. There were a total of 1600 (Friday: 519) course winners and 1739 (2804) losers. 109 (108) titles closed unchanged.
Late in the business, it was announced that Twitter had accepted Tesla boss Elon Musk’s takeover bid. This provided imagination and a boost to the overall market. Some support also came from hopes for another good reporting season, which has so far largely surprised on the upside. In the coming days, many heavyweights from the US corporate landscape will follow with their quarterly reports.
skepticism in early business
However, nothing has changed in the reasons for the risk aversion of investors observed in the morning, which had pushed prices down sharply on Friday: the forthcoming interest rate hikes by the US Federal Reserve in large steps, the ongoing war in Ukraine and the lockdowns in China with the resulting supply chain disruptions.
Beijing has started testing millions of residents and locking down business districts and some residential areas as the number of infections has soared. The fact that the Chinese central bank lowered the minimum reserve requirement for foreign currency loans brought a friendly tone to the market.
Musk is paying $54.20 per Twitter share
The Tesla boss buys Twitter for $44 billion, or $54.20 a share. Both parties agreed on this in the afternoon. The shares had been temporarily suspended from trading and eventually gained 5.6 percent to $51.69. Twitter is to be delisted as a result. Twitter management recently wanted to prevent the takeover.
The share of Coke was 1.1 percent up after the figures for the first quarter. The beverage manufacturer performed better than expected and gave a positive outlook. Activision Blizzard however, failed to meet expectations in terms of sales and earnings in the first quarter. The stock trended 0.7 percent weaker.
The expectation of rising US interest rates gave that dollar further boost. In addition, the US currency was also sought after as a safe haven in times of crisis, as market participants said. The dollar index rose 0.5 percent. Concerns about the economy also drove investors to the bond market. There, rising prices pushed down yields. The 10-year yield fell 6.7 basis points to 2.83 percent.
lose gold and oil
gold meanwhile, did not benefit from the search for “safe havens”. On the contrary, the precious metal, which does not yield any interest, lost some of its attractiveness in view of the rising market interest rates. In addition, the stronger dollar makes gold more expensive for non-dollar buyers.
oil fell again by around 3 percent as oil market players feared a drop in Chinese demand as a result of the lockdowns. The firmer dollar is also likely to have had a negative impact here.