Nasdaq jumps as easing in Treasury yields lifts growth stocks; Twitter surges

  • Twitter jumps on Musk news to resume buyout at $54.20/share
  • Rivian jumps on the reaffirmation of the view of fiscal year deliveries; raises his peers
  • US job openings post biggest drop in 2.5 years in August
  • Indices up: Dow 2.42%, S&P 2.63%, Nasdaq 2.92%

Oct 4 (Reuters) – The Nasdaq led Wall Street higher on Tuesday, propelled by growth in megacaps and tech stocks as U.S. Treasury yields fell, while Twitter Inc jumped on reports that Elon Musk offers to move forward with its initial bid for the social media company.

If successful, the Nasdaq Composite Index (.IXIC) should post its best one-day performance since July 27.

Data showed U.S. job openings, a measure of labor demand, fell the most in nearly 2.5 years in August. Read more

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Lifting rate-sensitive, tech-adjacent tech stocks, 10-year US Treasury yields fell for the second day after jobs data and a surprise move by Australia’s central bank to slow its pace of rising bonds. rate.

“The weaker-than-expected tremors indicate a weakening labor market,” said Thomas Hayes, chairman and managing member of New York-based Great Hill Capital.

“If this is confirmed by the NFP (non-farm payroll) employment report on Friday, it could give the Fed some cover to slow its tightening.”

Nonetheless, Governor Philip Jefferson said inflation was the most serious problem facing the Federal Reserve and “could take some time” to resolve and San Francisco Federal Reserve Chair Mary Daly said that the central bank should raise interest rates further. read more read more

Megacap market leaders such as Apple Inc (AAPL.O), Microsoft Corp (MSFT.O), Alphabet Inc (GOOGL.O) and Nvidia Corp (NVDA.O) rose between 2% and 5%, while the Philadelphia SE Semiconductor Index (.SOX) climbed 4.1%.

Billionaire Elon Musk is offering to continue with his initial $54.20 a share bid to take Twitter Inc , two sources familiar with the matter said, sending the social media company’s shares up 12.7% . Read more

Tesla Inc (TSLA.O), the electric vehicle company led by Musk, pared some of its early gains but still traded 1.5% higher. Read more

As of 12:52 p.m. ET, the Dow Jones Industrial Average (.DJI) was up 713.98 points, or 2.42%, at 30,204.87, the S&P 500 (.SPX) was up 96.88 points, or 2.63%, to 3,775.31, and the Nasdaq Composite (.IXIC) gained 315.72 points, or 2.92%, to 11,131.15.

Banks such as Citigroup (CN), Morgan Stanley and Goldman Sachs climbed nearly 5%, sending the Banks Index (.SPXBK) up 4%.

Indicating the broad-based nature of the gains, only nine stocks in the benchmark S&P 500 (.SPX) were trading in negative territory.

Stocks’ rebound in Monday’s first quarterly trading session followed Friday’s lowest close for the S&P 500 (.SPX) in nearly two years, which capped its worst monthly performance since March 2020.

Rivian Automotive Inc (RIVN.O) jumped 12.1% after the electric vehicle maker said it produced 7,363 units in the third quarter, 67% more than the previous quarter, and maintained its annual target of 25,000. Read more

Advancing issues outnumbered declining issues with a 9.87-to-1 ratio on the NYSE and a 4.81-to-1 ratio on the Nasdaq.

The S&P index recorded a new 52-week high and a new low, while the Nasdaq recorded 41 new highs and 45 new lows.

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Reporting by Medha Singh, Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D’Silva, Arun Koyyur and Sriraj Kalluvila

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