Overnight, US equities continued to swing back and forth; buyers swooped in on tech firms

 

Investors snatched up some of the technology firms that had been under pressure to start the year, sending U.S. equities higher on Monday. The Nasdaq Composite Index, which is centred on technology, rose 271.05 points, or 1.9 percent, to 14532.55, while the S&P 500 rose 36.78 points, or 0.8 percent, to 4582.64. The Dow Jones Industrial Average climbed 103.61 points to 34921.88, up 0.3 percent. After the Federal Reserve hiked interest rates for the first time since 2018 to combat inflation, the indices have surged over the last three weeks. The S&P 500 and Dow industrials are down roughly 5% from their January highs, while the Nasdaq is down almost 10% from its November high.

After Tesla Chief Executive Elon Musk announced that he possessed a 9.2 percent investment in the social media business as of March 14, Twitter shares lead the S&P 500, rising $10.66, or 27 percent, to $49.97. Twitter’s market value increased by $8.53 billion, the most it has ever gained in a single day. Stocks of smaller companies have also gained momentum. The Russell 200 index rose 0.2 percent to 2,095.44, a gain of 0.2 percent.

Musk has openly questioned the company’s commitment to free speech in recent weeks. The gains helped raise the broader communications sector and put the S&P 500 in the black, despite the fact that just under half of the index’s businesses declined.
The major lifting was done by big technology equities on Monday, offsetting losses elsewhere. Such corporations have high stock prices and have a greater influence on the market’s ups and downs. Apple rose 2.4% and Microsoft gained 1.8%. Investors are keeping a close eye on the war in Ukraine, where Russia may face even tougher economic penalties now that details of what appear to be premeditated civilian fatalities are surfacing.

Josep Borrell, the EU’s foreign policy leader, joined a rising chorus of international condemnation of the alleged crimes, declaring that the 27-nation union “will forward, as a matter of urgency, work on new penalties against Russia.” Meanwhile, following a tech-driven gain on Wall Street, Asian stocks sank Tuesday and oil prices rose. Many regional markets, including those in China, were closed for the holidays, resulting in little trading. The Nikkei 225 index in Tokyo declined 0.1 percent to 27,705.25, while the Kospi in Seoul fell 0.1 percent to 2,755.36. The S&P/ASX 200 index rose 0.7 percent to 7,565.80 points. Malaysia is down, while Singapore is up.
Concerns about increasing prices and the impact on global economic development have risen as a result of Russia’s invasion of Ukraine. Prices for everything from food to clothing were already rising, and the war has made energy prices even more volatile. The World Bank has lowered its growth prediction for the Asia-Pacific area to 5% from 5.4 percent for 2022, citing interruptions in commodity supply, financial pressures, and rising pricing as reasons. This comes after a return to 7.2 percent growth in 2021, when several economies endured downturns due to the pandemic’s advent.

Slower development and greater poverty are expected in the Asia-Pacific area this year, according to the research, as “multiple shocks” exacerbate problems for people and companies. Oil prices have been hovering around $100 a barrel, putting a strain on many countries that rely on oil and gas imports.

In electronic trading on the New York Stock Exchange, U.S. crude rose $1.20 to $104.48 a barrel early Tuesday. Brent was trading at $108.86 per barrel, up $1.33. On Monday, the price of U.S. benchmark crude increased by 4%, while Brent crude, the worldwide benchmark, increased by 3%. Early Tuesday, the 10-year Treasury yield was 2.40 percent, close to its Monday finish of 2.41 percent.

As Wall Street anticipates for higher interest rates, bond yields have been rising all year. The Federal Reserve hiked its benchmark overnight rate once already, the first time since 2018. To combat the impact of growing inflation, the central bank is likely to keep hiking rates through 2022. On Wednesday, the Federal Reserve will issue the minutes from its most recent meeting. The US dollar fell to 122.54 Japanese yen from 122.79 yen in currency trade. The euro dropped from $1.0976 to $1.0970.