Wall Street lurches to a higher close as the Fed

Nasdaq jumps as falling Treasury yields lift growth stocks; Twitter soars

  • Twitter jumps on the news that Musk is resuming the buyout at $54.20/share
  • Rivian jumps in to confirm the view of deliveries for the fiscal year; lifts peers
  • US job vacancies post biggest drop in 2.5 years in August
  • Indices up: Dow 2.42%, S&P 2.63%, Nasdaq 2.92%

Oct 4 (Portal) – The Nasdaq led Wall Street higher on Tuesday, buoyed by megacap growth and technology stocks, as US Treasury yields fell, while Twitter Inc responded to reports Elon Musk suggests his original bid to continue for the social media company.

If gains continue, the Nasdaq Composite (.IXIC) Index will post its best one-day performance since July 27th.

Data showed that US job vacancies, a measure of labor demand, fell in August by the most in almost 2-1/2 years. Continue reading

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US 10-year Treasury yields fell for a second day after jobs data and a surprise move by the Reserve Bank of Australia to slow the pace of interest rate hikes.

“Shocks arriving lower than expected point to a weakening labor market,” said Thomas Hayes, chairman and managing partner of New York-based Great Hill Capital.

“If confirmed by the NFP (Non-Farm Payroll) jobs report on Friday, it could give the Fed cover to slow its tightening.”

Nonetheless, Gov. Philip Jefferson said that inflation is the most serious problem facing the Federal Reserve and that it “might take time” to address, and San Francisco Federal Reserve Bank President Mary Daly said the central bank need to raise interest rates further. read on read on

Megacap market leaders like Apple Inc (AAPL.O), Microsoft Corp (MSFT.O), Alphabet Inc (GOOGL.O) and Nvidia Corp (NVDA.O) gained between 2% and 5%, while the Philadelphia SE Semiconductor Index (.SOX) rose 4.1%.

Billionaire Elon Musk is proposing to go ahead with his initial offer of $54.20 per share to privatize Twitter Inc (TWTR.N), two sources familiar with the matter said, causing shares of the social media company to surge sent up 12.7%. Continue reading

Tesla Inc (TSLA.O), the electric vehicle company Musk runs, pared some early gains but still traded 1.5% higher. Continue reading

At 12:52 p.m. ET, the Dow Jones Industrial Average (.DJI) was up 713.98 points, or 2.42%, to 30,204.87, the S&P 500 (.SPX) was up 96.88 points, or 2.63% 3,775.31 and the Nasdaq Composite (.IXIC) was up 315.72 points, or 2.92%, to 11,131.15.

Banks like Citigroup (CN), Morgan Stanley and Goldman Sachs climbed almost 5% and boosted the Banking Index (.SPXBK) by 4%.

Indicative of the broad-based nature of the gains that only nine stocks in the benchmark S&P 500 (.SPX) index traded in negative territory.

Stocks’ rebound in the first trading session of last quarter on Monday followed the S&P 500 (.SPX)’s lowest close in nearly two years on Friday, which capped its worst monthly performance since March 2020.

Rivian Automotive Inc (RIVN.O) rose 12.1% after the electric vehicle maker said it produced 7,363 units in the third quarter, up 67% from the previous quarter, and maintained its full-year target of 25,000. Continue reading

Rising issuance outweighed declines with a 9.87-to-1 ratio on the NYSE and a 4.81-to-1 ratio on the Nasdaq.

The S&P index posted a new 52-week high and a new low, while the Nasdaq made 41 new highs and 45 new lows.

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Reporting by Medha Singh, Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Edited by Anil D’Silva, Arun Koyyur and Sriraj Kalluvila

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