Technology stocks took the lead on Wall Street on Thursday. The day started with a broad stock market fall after new infection records in the US, but turned around along the way.
How the stock exchanges closed:
- Industrial-heavy Dow Jones, with a few dozen selected stocks, rose 0.15 percent
- The broad S&P 500 index, which consists of the 500 most important and largest listed companies in the United States, rose 0.39 percent.
- Technology-heavy Nasdaq rose 0.87 percent.
The turnaround on the stock markets took place after the Republican leader in the Senate, Mitch McConnell, has agreed to resume negotiations with the Democrats on a new stimulus package in the USA. It is several months since Congress approved the previous crisis package, to improve the economy as a result of the corona crisis.
Tesla continues its rise
The technology shares have led the way in trading.
The Tesla stock reached an all-time high on Thursday, and for a short period the stock was trading at $ 507.75, according to CNBC.
Tesla has experienced a big rise on Wall Street after it became known that the stock is listed in the important S&P 500 index. Becoming part of the S&P 500 means that many index managers now have to buy the stock into their portfolios, typically when customers have been promised a stock return similar to the S&P 500 index.
When the stock exchanges closed, a Tesla share cost $ 499.27, and today’s rise ended at 2.6 percent.
– Must consider increasing infection against good vaccine news
In recent weeks, there has been a marked rise in the stock market after uplifting vaccine news. On Wednesday, Pfizer and Biontech announced that their vaccine candidate has reached 95 percent efficiency – the same as Moderna’s.
But corona statistics are becoming increasingly bleak, and several local governments have shut down society in the United States again. Schools in New York close their doors on Thursday.
– The markets must consider increasing infection against good vaccine news. American stock markets seem to be burdened by infection figures, and the S & P500 fell by 1.2 percent yesterday, writes senior economist at DNB Markets Knut A. Magnussen in his morning report on Thursday.
He points out that although there are signs of improvement in Europe in several countries, it is not relevant to end the period of closure yet.
– The development on the infection front indicates that economic development will worsen in the short term. At the same time, there is always good news on the vaccine front, which will contribute positively throughout 2021, he writes. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other form of use of all or part of the content, can only take place with written permission or as permitted by law. For additional terms look here.