June 13, 2024

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US stocks open higher after tough trading week

US stocks open higher after tough trading week

US stocks opened higher on Friday after a grueling week of losses across the major indexes.

The S&P 500 rose 1.1% shortly after the opening bell. The Dow Jones Industrial Average added 259 points, or 0.8%, and the Nasdaq Composite Index added 1.8%.


TWTR -10.16%

Shares fell 10 percent after that


chief executive officer

Elon Musk

He wrote on Twitter that his deal to buy the social media company and take it private was “temporarily on hold.” Details about the size of the fake accounts on the social media platform. Mr. Musk later tweeted that he was committed to the acquisition, helping Twitter Trim losses to more than 20% before the opening bell. Tesla stock jumped 5.9% after Mr. Musk’s tweets.

This was followed by higher moves in the broader market Late rally on Thursday That helped the Nasdaq Composite Index gain. Risk sentiment has been trading in international stock markets overnight. By Friday morning in the US, investors were collecting stocks of shabby tech companies before the opening bell

Investors described the recovery as a respite from the market selling that put the three major US indexes on pace for their worst week since late January. As of Thursday’s close, the Nasdaq Composite is down 6.4% this week. Meanwhile, the Dow is on track to fall 3.6% and extend its losses to the seventh consecutive week – its longest losing streak since 2001.

“This may be just a bullish buy-on-back and an extreme cat bounce more than anything else,” said Greg Swenson, co-founder of Brig MacAdam, a London-based investment bank. He said he expects more losses for the US stock market, given the future. “Even the big companies will suffer from the market.”

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Investors are currently facing issues not seen in decades as inflation continues to hover near a four-decade high. Many traders are now dealing with the increased risk of a recession as the Federal Reserve tries to control pricing pressures. Many institutional and individual investors alike are beginning to dismiss the idea that the Fed can engineer a so-called soft landing, during which inflation declines while unemployment remains low and the economy continues to grow.

The last time inflation was this high, the Federal Reserve raised interest rates so much that it put the US into a recession. Will we see a repeat of that day? Dion Rabouin of the Wall Street Journal explains why the Fed’s next steps are important. Photo: Kevin Deitch/Getty Images

On Thursday, Federal Reserve Chairman Jerome Powell acknowledged that controlling inflation could create short term blow to the economy“The process of bringing inflation down to 2% would also involve some pain,” he said on a Marketplace radio show.

He reiterated his view that additional increases of half a percentage point would likely be appropriate in future meetings, but said the central bank might consider larger increases if economic data called for such steps.

This week’s inflation report offered little consolation to investors, especially after data showed that Price pressures were quite extensive. Even as gasoline prices fell, so did the prices of groceries, as well as dining out, air travel and other services, alarming investors who had hoped inflation had peaked.

This has forced many to sell riskier investments and pile them into assets that are seen as safer. Growth and technology stocks, which tend to be hurt by rising interest rates, in particular, are off. But risk aversion sentiment has spread elsewhere, Leading to a sharp drop in cryptocurrenciesvery.

“This week has been a pivotal point in the markets. The mood has changed from assessing whether we can live in an economy at higher rates to [investors] He asked, “Are we on the verge of a recession?” said Florian Ilbo, Head of Macro at Lombard Odier Investment Managers.

But on Friday, technology stocks were among those that led the recovery.


added 3.6%,


3.0% advance and


2.6% profit.


Up 19% after Sam Bankman-Fried, founder of crypto exchange FTX, He disclosed that he had bought a 7.6% stake in the brokerage.


It jumped 22% after the language-learning platform reported a sharp jump in revenue and monthly active users.

Bitcoin rose to around $30,419 on Friday, from the 5pm ET level of $28,572.24 on Thursday. Elsewhere in the crypto markets, however, the beleaguered stablecoin TerraUSD continued to slide, trading at 11 cents. The so-called stablecoin with its typical $1 correlation, TerraUSD broke through from this level at the end of last week. token sale wave. Sister token Luna has also fallen sharply this week, trading at half a penny, down from over $60 on Monday.

Traders worked on the floor of the New York Stock Exchange on Thursday.


John Minchillo/The Associated Press

In the bond market, the yield on the benchmark 10-year US Treasury rose to 2.906% from 2.815% on Thursday, reversing the four-day yield drop that came as investors once again piled into bonds. Yields rise when bond prices fall.

The WSJ Dollar Index, which measures the US currency against a basket of other currencies, rose 0.1%. As of Thursday, it has been trading higher for six consecutive sessions, gaining about 2.3% over the period.

Overseas stock markets were also trading higher on Friday. In Europe, the Stoxx Europe 600 Index across the continent is up 1.6%. In Asia, Hong Kong’s Hang Seng rose 2.7%, while Japan’s Nikkei 225 climbed 2.6%. The Shanghai Composite Index is up 1%.

—Caitlin Ostrov contributed to this article.

Write to Caitlin McCabe at [email protected]

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