Wall Street stocks surged on Tuesday as Easing inflation and projections of good returns in the next quarter pushed stock prices up during the first half of the trading session. In the second half, the stocks suffered some setbacks as the market panicked with news reports regarding a missile strike in Poland.
Despite the panic, major indices were able to close the trading session with gains. The Dow Jones Industrial Average edged up 0.2 percent to finish the session at 33,592.92. The broad-based S&P 500 gained 0.9 percent to 3,991.73, while the tech-rich Nasdaq Composite Inc increased 1.5 percent to close at 11,358.41.
American e-commerce giant Amazon gained on Tuesday by 0.45 (+0.46%) to conclude trading at 98.94 dollars per share. There are media reports that Amazon is planning to lay off 10000 employees in what will be the biggest layoff in the history of the company. The stock has improved by 14.86 percent in the last 5 trading sessions.
Social media giant, Meta Platforms also witnessed a surge in stock prices as the share settled at 117.08 dollars with a 2.50 percent increase. The stock has improved by 15.38 percent in the last 5 trading sessions.
“There will be trepidation at the central bank given their credibility concerns and desire to avoid the mistakes of the 1970s (i.e., stop and start a policy that prolonged the inflationary spell). But the crumbs are already being laid for a deceleration in the pace of tightening heading into 2023,” said Ross Mayfield, investment strategy analyst at Baird.
Investors and traders in the USA had been extremely cautious about investing in US stocks for the past few months as higher interest rates and volatile macroeconomic conditions made businesses suffer from losses. High inflation rates caused by the energy crisis had forced US Federal Reserve to increase interest rates multiple times over the last few months. As borrowing costs went up, the economy started slowing down.
Various tech and non-tech multinational conglomerates based in the United States of America were forced to lay off 1000s of employees to cut costs. Higher operational costs and reduced revenue severely hurt the financials of companies.
