Wall Street rebounds after worst week; SAVE, XOM, AAPL rally

Image Source: © Albo | Megapixl.com

Wall Street stocks kicked off the trading week on a positive note on Tuesday, June 21, after an extended weekend due to the Juneteenth federal holiday, rising strongly after heavy sell-offs in the previous sessions.

Investors showed an appetite for riskier stocks. Tech and other growth stocks, which were hit particularly hard by concerns over interest rate hikes, rebounded strongly on Tuesday.

The S&P 500 increased by 2.4% to 3764.79. The Dow Jones rose 2.1% to 30530.25. The Nasdaq Composite jumped 2.5% to 11069.30, and the small-cap Russell 2000 gained 1.70% to 1694.03.

The crypto market also climbed nearly 2% to around US$916.4 billion, propped up by positive sentiments. Bitcoin rose almost 4% to about US$21,000 from its price 24 hours ago.

On June 15, the Federal Reserve had raised the interest rates by three-quarters of a percentage point for the first time in three decades to stem a disruptive surge in inflation.

The CPI data released by the Labor Department early this month showed that US inflation climbed to 8.6% in May, a fresh 40-year high, triggering a panic sell-off in the stock market.

Investors didn’t take time to offload the riskier assets after Fed’s rate revision, the steepest increase since 1994. The fear of a looming recession forced traders to run for cover. Tuesday’s gains may have come as a relief for traders after a tumultuous week.

Twitter shares rose almost 3% after it sent a letter to its shareholders to back the US$44 billion deal with Elon Musk.

Shares of Kellogg also surged 2% after the cereal and snack giant announced splitting the business into three individual companies.

Spirit Airlines (SAVE) also saw its shares jumping 7.9% after JetBlue Airways chased the company with a sweeter deal to ward off rival airline Frontier Airlines.



 


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