US Stocks Significantly Higher, European Stocks Rise For The Third Session.
London, Tuesday, 18 May 2022
US Markets Summary
On Tuesday, US markets closed significantly higher, aiming to recoup losses from previous sessions. The Dow Jones rose 1.3 percent to 32655, the S&P 500 rose 2% to 4089, and the Nasdaq rose 2.8 percent to 11985.
Investors analysed Fed Chair Janet Yellen's comments on restrictive monetary policy, with the central bank leader reiterating that the Fed will keep hiking rates until inflation falls.
Investors' spirits were also lifted by a wave of positive earnings reports, as well as solid retail sales and industrial output figures that suggested the economy remained strong in April.
On the corporate front, United Airlines surged 7.9% after raising its current-quarter sales prediction, while Home Depot rose 1.7 percent after providing excellent outlook and reporting better-than-expected profits.
In addition, Citigroup rose 7.5 percent following news that Warren Buffett's Berkshire Hathaway had made a large investment in the bank. Walmart, on the other hand, dropped 11.4 percent after missing Wall Street estimates.
European Markets Summary
On Tuesday, European stocks rose for the third straight session, with the pan-European STOXX 600 index finishing more than 1% higher, boosted by advances in commodities and financials stocks.
Riskier assets were sought by investors, who hoped that demand in China would be sustained once outbreaks in important cities were brought under control.
Furthermore, strong retail sales data from the United States assuaged concerns about slowing economic growth. Imperial Brands' stock soared nearly 8% after the company reported solid profits and provided upbeat expectations.
Domestically, the DAX 30 index rose 1.6 percent to 14,186 points, owing to increases in the manufacturing sector.
(Written and edited by: The Decision Maker)