Stocks bounce off Powell’s ‘aggressive’ rate hikes comments- Market update
- Tesla shares jumped nearly 8% as the company opened its Berlin Gigafactory
- Tesla shares jump nearly 8%
- Tesla, Alibaba and Boeing were some of the major market players in the spotlight
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Tesla shares jumped nearly 8% as the company opened its Berlin Gigafactory, while Boeing shares recovered from Monday's losses following the crash of a Boeing 737 jet in China.
Stocks rose in Tuesday’s session to close higher as the bounce off Monday’s retreat held. The positive moves seen across the US market came after similar intraday action in the Asian and European markets.
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The S&P 500 gained 1.13% while the Dow Jones Industrial Average added 0.74% and the Nasdaq Composite rose 1.95% – all the benchmarks erasing losses suffered on Monday.
In Europe, the pan-European Stoxx 600 index rose 0.85% while Germany’s DAX and France’s CAC saw an upside of more than 1.0% each.
UK’s FTSE 100 also edged higher, closing 0.46%.
Earlier, Japan’s Nikkei gained 1.48% and Hong Kong’s Hang Seng index jumped 3.15%.
The positivity across the stock markets followed Monday’s retreat on Wall Street after Fed Chair Jerome Powell indicated the US central bank would move aggressively in the battle to address rising inflation.
Tesla shares jump nearly 8%
In individual stocks, Tesla, Inc. (NASDAQ: TSLA), Alibaba Group Holding Ltd, and Boeing Co. (NYSE: BA) were some of the major market players in the spotlight.
Tesla shares jumped nearly 8% after the electric vehicle maker opened its Berlin Gigafactory.
Alibaba’s shares meanwhile jumped more than 11% on the Hong Kong stock exchange following the e-commerce giant’s announcement of an increase to its share buyback program. According to the company, the repurchase will increase by $10 billion to $25 billion over the next two years.
Elsewhere, Boeing shares ended Tuesday’s session 2.75% higher to recoup most of the losses suffered Monday. The company’s shares had dropped 3.6% on Monday after the tragic crash of a Boeing 737 jet that killed more than 130 people in China.
Gold and oil drop
Powell’s remarks also weighed on gold and oil prices on Tuesday, with the precious metal falling to weekly lows and oil shedding gains made on Monday.
As Treasury yields rose and the US dollar firmed on Fed’s likely aggressiveness, gold declined 0.73% to $1,921 per ounce. Meanwhile, Brent crude fell 0.47% to $115.46 per barrel. The benchmark US West Texas Intermediate crude shed 0.74% to around $111.73 per barrel. Oil’s retreat on Tuesday erased the previous day’s upside of about 7%.
In crypto, Bitcoin recovered from a dip below $41k to break above $43,000. The BTC-USD pair was trading around $42,820 (at 17:50 PM ET) to sit 3.9% higher in the past 24 hours.