Dow Jones Rebounds From Massive Losses, European Stocks Significantly Lower with Dax at 6-Week Low.
London, Monday, 25 April 2022
US Markets Summary
On Monday, the Dow Jones industrial average rebounded from significant losses to end the day with gains.
At one point, the blue-chip index was down 488 points, but it managed to recover and conclude the day with a gain of 238 points, or 0.7 percent, at 34,049.
On Friday, the Dow dropped more than 900 points, posting its largest day loss since October 2020.
The S&P 500 rose 24 points, or 0.57 percent, to 4,296 on Monday.
The Nasdaq, which is heavily weighted in technology, gained 165 points, or 1.29 percent, to close at 13,004.
After trading was momentarily paused in the S&P 500 during the mid-day session amid a prospective purchase agreement, Twitter stock rose 5.66 percent to complete the day at $51.70 per share.
Twitter owners will receive $54.20 in cash for each common stock they possess, according to an earlier announcement.
The social media platform has entered into a definitive deal to be acquired by an entity fully owned by entrepreneur and business magnate Elon Musk for $44 billion.
The 10-year US Treasury note yield dropped from 2.84 percent to 2.824 percent. The VIX fear index, sometimes known as the fear gauge, fell 4.22 percent to 27.02.
In contrast, the dollar index rose 0.52 percent to 101.75.
Precious metals fell, with gold falling 1.75 percent to $1,898 an ounce and silver falling 2.2 percent to $23.64 an ounce.
Crude oil prices have dropped by more than 3%.
Brent crude, the global standard, was down 3.4 percent at $102.57, while US benchmark West Texas Intermediate (WTI) was down 3.1 percent at $98.97.
European Markets Summary
Fears of faltering economic growth, a looming tightening cycle of monetary policy, and a worsening of the pandemic situation in China more than offset relief from Macron's strong victory in the French presidential elections on Monday, with Germany's DAX down more than 1.5 percent to its lowest level since mid-March.
Oil and gas equities following the decrease in crude prices, and China-exposed industries were among the worst performances.
On the earnings front, Philips, a Dutch health technology company, reported a 30 percent drop in Q1 core profits from the previous year, owing in part to a large-scale recall of its ventilators, while Roche, a Swiss pharmaceutical company, reported a better-than-expected 10% increase in Q1 sales due to strong demand for antigen COVID-19 tests. On the statistical front, German business sentiment improved surprisingly in April.
(Written and edited by: The Decision Maker)