It started with a drop – then the stock market turned around

On Thursday, the two largest stock exchanges are set to decline somewhat, based on index movements in pre-trading. And when the stock markets opened, it looked like that. But soon after, the buying interest returned, and so it ended for the central indices:

The broad S&P 500 stock index, the Dow Jones Industrials index, and the Nasdaq 100 technology exchange index rose about 1.2 to 1.3 percent.

And according to the Standard & Poor’s 500 index, the US stock market has risen more than 15 percent since the new year.

For one individual stock that was expected to drop significantly Thursday, it was Tesla. Pre-trading indicated that the electric car manufacturer will decline by nearly three percent on the Nasdaq Stock Exchange, and at the opening of the stock exchange, the stock also fell by 2.5 percent. Half an hour later, the price drop has dropped to one percent, and buyers seem to be back in stock. In two hours of trading, the decline turned into an increase. However, it was not strong. The share price ended down 0.4 percent.

As usual, Tesla was among the most heavily traded stocks in the US on Thursday, this time it was complemented by tek shares. Price performance was somewhat erratic, and Nvidia fell 0.8 percent.

The VIX indicator falls

Stockbrokers followed the Federal Reserve’s latest interest rate decision with skeptical eyes on Wednesday. Federal Reserve Chairman Jerome Powell’s hints of a possible two rate hikes later this year sent indices crashing before the mood solidified towards closing time in New York.

Although the stock indexes on Wednesday and Thursday have pointed both up and down, and with sudden swings suggesting that investors may be nervous or waiting, the measure of volatility is declining. One of the most famous indices, the Vix, was last week at its lowest level since the outbreak of the Corona pandemic. The small elevator on Monday and Tuesday is about to break down.

The stock market sentiment in the past few days has indicated that some investors are taking profits after a strong rally, but there is also a belief that the stock market will enter calmer waters than it has been in several years. (conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For more terms see here.