Nasdaq Led Rebound Trimmed Weekly Losses in New York and Europe
- May 13, 2022
- Barry Adams
Rebound in tech stocks in New York spread to the energy patch and lifted market indexes in Europe trimming weekly losses. Germany led the market advance in Europe. Crude oil jumped 4% inching closer to a 10-year high.
U.S. stocks rebounded from a week of losses and leading indexes advanced as investors returned in search of tech bargains.
The S&P 500 index increased 1.3% to 3,980.25 and the Nasdaq Composite advanced 1.8% to 11,569.50.
Crude oil jumped 4% to $110.43 a barrel and the yield on 10-year bond to 2.93%.
The indexes opened higher and quickly advanced in the session reaching intra-day high around 12:15 p.m. ET but began to track lower after crude oil price advanced and the rally failed to spread beyond the tech and energy sector.
After an additional hour of trading regained momentum but trimmed the gains near the final fifteen minutes of trading.
For the week, the S&P 500 declined 1.3% and the Nasdaq Composite fell 1.2%.
Apple gained 2.5% to $146.10, Microsoft added 1.6% to $259.54, Meta Platforms advanced 3.4% to $197.74, and Amazon jumped 5.2% to 2,250.20.
Twitter Inc soared 11% after Elon Musk demanded the company to confirm the number of fake accounts operated by spam or robots.
Twitter in a regulatory filing had said about 5% of its active accounts are likely to be operated by robots or appear to be fake.
Exxon Mobil added 2.9% to $88.82, Chevron gained 2% to $167.93, Schlumberger NV increased 4.2% to $40.73.
European markets advanced after bargain hunters searched for stocks in energy and tech sectors.
The DAX index increased 1.5% to 13,938.2, the CAC-40 index gained 1.6% to 6,303.02, and the FTSE 100 index added 1.6% to 7,348.66. The benchmark SMI index in Switzerland gained 1.3% to 11,650.42.
For the week, the DAX gained 2.8%, the CAC-40 advanced 2.2%, and the FTSE 100 index added 0.4%.
Industrial output in the euro zone declined 1.8% in March from February and fell 0.8% from a year ago, the statistics agency of the region Eurostat said today.
The weakening supply chains and rising prices in the region impacted the output in the region.
The agency also revised lower February output to 0.5% increase from 0.7% and to 1.7% gain from 2.0% on a monthly and annual basis respectively.
Separately, the French statistics agency said inflation rose at an annual pace of 5.4% in April from a year ago.
Energy stocks were in demand after crude oil prices continued the ascent on the worries that resumption of economic activities across Europe and China may lead to acute shortages.
Brent crude traded up 1.6% to $109.2 a barrel.
Royal Dutch Shell and BP Plc gained more than 1%.
Renault gained more than 2% after the company said it is looking to separate its research and development arm focused on building electric vehicles.
Finland-based Fortum Oyj jumped 4% after the utility company said it is planning to exit from its Russian operations.
In Zurich, Credit Suisse, UBS, and Holcim Group gained between 2% and 3%. Holcim is looking to sell its India operations that may fetch between $7 billion and $9 billion.
Bridgepoint Group PLC jumped 7.7% after the annual meeting of shareholders and the company finalized its dividend.
Drax Group and Vodafone Group fell on broker downgrades.
Asian markets advanced after bargain hunters looked for companies in the tech, energy, and utility sectors.
The Nikkei index increased 2.6% to 26,427.14, the Hang Seng Index gained 2.7% to 19,89.02, and the Shanghai Composite index advanced 1% to 3,084.03.
Chinese authorities denied that Beijing is likely to be placed in a Shanghai-style lockdown.
Separately Shanghai local authorities confirmed that the city is expected to reach to zero-Covid at several communities levels next week.
Stocks in Mumbai edged lower for the sixth day in a row on the worries that the elevated energy prices will slow down the economy and lift rates higher.