Wall Street rises for a second day, led by technology stocks


On Friday, US stocks jumped, rebounding for the second day in a row, led by technology stocks, and reopening trading, after Wall Street began the week with heavy losses.

The Dow Jones index rose 320 points, the S&P 500 index increased by 1.1%, while the Nasdaq index, which is the relatively low performer, declined by 1.3%. Stocks advanced despite the data showing that consumer purchases had slowed in the last month. On Friday, the US Commerce Department reported that retail sales were flat in April.

Technology stocks were the best performers in Friday’s trading, as Tesla’s share rose by 1.2%, and Twitter’s shares rose by more than 1%, while Facebook, Apple and Amazon were all traded. “Netflix” and “Alphabet” are green.

Disney shares bucked the trend, dropping 4.5%, after reporting weaker-than-expected revenues.

Shares of “United Airlines” and “American Airlines” rose more than 4%, while the shares of “Carnival” rose by 6%, while the shares of “Norwegian Cruise Line” for cruises and “Royal Caribbean” for cruises advanced more than 5%. %.

Market volatility comes this week, as economic data point to inflation. The CPI jumped 4.2% from a year earlier in April, the fastest rate since 2008. This has raised concerns that the Federal Reserve may have to pull back from its accommodative monetary policy.

Retail sales in April

Retail sales in the US were unexpectedly flat in April, as support from stimulus payments ebbed, but the coming months are likely to accelerate as savings reach unprecedented levels and economic activities resume.

The Ministry of Commerce said Friday that the reading of retail sales that did not change last month came after a 10.7 percent rise in March, an upwardly revised reading from the previous reading, which indicated a growth of 9.7 percent.

Economists polled by Reuters had expected retail sales to rise 1 percent.

Several eligible families received additional payments of $ 1,400 in March, which came as part of a $ 1.9 trillion White House COVID-19-related aid package that was approved early that month.

Consumer spending, which accounts for more than two-thirds of US economic activity, grew at an annual pace of 10.7 percent in the first quarter of the year, adding 7.02 percentage points to the economy’s annual growth rate of 6.4 percent.

Industrial production rises

American factory production increased in April, with the return of compounds damaged by stormy weather in the south in February, offsetting the impact of a decrease in car production.

On Friday, the Reserve Board said manufacturing production rose 0.4 percent last month, after rising 3.1 percent in March. Production is still slightly below the pre-pandemic level.

“One of the important tributaries to the growth of factory production was the return of operations to complexes that were damaged by bad weather conditions during February in the south-center of the country and remained closed in March,” the reserve said.

Economists polled by “Reuters” had expected industrial production to grow 0.4 percent in April.

The manufacturing sector contributes 11.9 percent of the US economy, and is supported by a massive financial stimulus and a shift in demand towards goods at the expense of services due to the Coronavirus pandemic.

But the surge in demand has led to a shortage of raw materials, while the pandemic keeps some workers at home, which puts more pressure on supply.

A global semiconductor crisis has forced US auto makers to reduce production. Auto factory production fell 4.3 percent in April. Excluding cars, industrial production would have increased by 0.7 percent.



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