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

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

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

Sector summary

All the 11 sectors of the S&P 500 index closed in green. Energy, healthcare, and technology sectors were the top gainers, while utilities, real estate, and basic materials were the laggards.

In the energy sector, Exxon Mobil Corporation (XOM) increased by 6.22%, Chevron Corporation (CVX) gained 4.19%, and Shell plc (SHEL) was up 5.05%.

In the healthcare stock, Johnson & Johnson (JNJ) rose 2.09%, UnitedHealth Group Incorporated (UNH) surged 6.25%, and Eli Lilly and Company (LLY) scaled 2.21%.

In technology stocks, Apple Inc. (AAPL) was up 3.28%, Microsoft Corporation (MSFT) increased by 2.46%, and NVIDIA Corporation (NVDA) gained 4,32%.

In the utility sector, NextEra Energy, Inc. (NEE) soared by 2.71%, Duke Energy Corporation (DUK) jumped by 1.42%, and The Southern Company was up by 2.69%.

In real estate, American Tower Corporation (AMT) increased by 4.52%, Prologis, Inc. (PLD) rose by 1.81%, and Crown Castle International Corp. climbed by 3.72%.

Also Read: Growth stocks lift Wall Street ahead of Fed's rate decision

Wall Street, crypto rebound after a worst week; K, TWTR, SAVE surged

Also Read: Frontier Group (ULCC) to acquire Spirit Airlines for US$6.6 billion

Wall Street, crypto rebound after a worst week; K, TWTR, SAVE surged

Also Read: Wall Street rallies after Fed’s big rate hike; NUE, BA, BYND soar

Futures & Commodities

Gold futures were down 0.29% to US$1,835.25 per ounce. Silver increased by 0.39% to US$21.672 per ounce, while copper rose 0.51% to US$4.0265.

Brent oil futures increased by 0.59% to US$114.79 per barrel, and WTI crude was up 1.57% to US$109.69.

Also Read:  Three issues need to be fixed for Twitter deal to go ahead: Musk

Bond Market

The 30-year Treasury bond yields were up 1.66% to 3.349, while the 10-year bond yields rose 1.28% to 3.281.

US Dollar Futures Index decreased by 0.06% to US$104.195.


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