Wall Street rebounds as growth stocks rally; Twitter falls

  • Alphabet and Amazon lead gains among megacap stocks
  • All eyes on the US CPI report later this week
  • Didi Global bursts into report on conclusion of China regulatory investigation
  • Indices up: Dow 0.98%, S&P 1.31%, Nasdaq 1.63%

June 6 (Reuters) – U.S. stock indices regained ground lost last week on Monday as investors bought heavyweights Apple and Amazon.com, while Twitter tumbled after Elon Musk threatened to quit his job. $44 billion buyout deal.

Ten of the 11 major S&P sectors rose in early trading, with Communication Services (.SPLRCL) and Financial Services (.SPSY) leading the pack with gains of 2% and 1.8%, respectively. The energy sector (.SPNY) bucked the trend to fall 0.5%.

Apple Inc (AAPL.O), Tesla Inc (TSLA.O), Alphabet Inc (GOOGL.O) and Amazon.com (AMZN.O) climbed between 1.9% and 3.8%. Amazon shares were trading after adjusting to a 20-to-1 split.

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The gains came after a bruising Friday when a strong jobs report dashed hopes of a pause in the Federal Reserve’s aggressive policy-tightening plan to calm decades-high inflation.

“I don’t see a lot of positive catalysts at the moment. We’ve just gone back to standard volatility, where you have a big day followed by a big down day and back and forth on that,” Randy Frederick said. , Director of Trading and Derivatives for Charles Schwab.

“At the moment, we don’t really know whether or not the market can handle interest rate hikes. It’s probably prudent to stay on the safe side and be extra cautious if you’re considering buying down days or even to try to catch any momentum to the right side.”

All eyes will be on the US Consumer Price Index report later this week for more clues on the trajectory of future interest rate hikes. Signs that inflation remains strong could spook markets already battered by fears that a hawkish Fed could tip the economy into a recession. Read more

Money markets are fully pricing in the 50 basis point increases from the US central bank next week and in July.

Monday’s upbeat mood was also buoyed by optimism about the easing of regulatory repression in China and signs of a return to normal life in Beijing and Shanghai after the country’s largest COVID-19 outbreak in two years.

Didi Global Inc jumped 50% after a report that Chinese regulators were preparing as early as this week to allow the ride-hailing company’s mobile app to return to domestic app stores. Read more

Shares of JD.com Inc, Baidu and Alibaba Group, all targets of China’s crackdown on internet companies, gained between 3.6% and 8.9%.

As of 10:20 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 320.99 points, or 0.98%, at 33,220.69, the S&P 500 (.SPX) was up 53.65 points, or 1.31%, to 4,162.19, and the Nasdaq Composite (.IXIC) rose 195.96 points, or 1.63%, to 12,208.69.

Twitter Inc fell 3.9% after billionaire Musk said he could drop his takeover bid if the social media company did not provide data on spam and fake accounts. Read more

Advancing issues outnumbered declining issues with a 2.58-to-1 ratio on the NYSE and a 1.65-to-1 ratio on the Nasdaq.

The S&P index recorded a new 52-week high and 29 new lows, while the Nasdaq recorded 45 new highs and 47 new lows.

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Reporting by Medha Singh, Susan Mathew and Devik Jain in Bengaluru, additional reporting by Tom Westbrook in Singapore; edited by Aditya Soni

Our standards: The Thomson Reuters Trust Principles.

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