Stocks Claw Back More Ground as Rally Continues

Twitter jumps 22.1% after reports Musk plans to proceed with deal
By Newser Editors and Wire Services
Posted Oct 4, 2022 3:47 PM CDT
Twitter Jumps 22.1% on a Winning Day for Wall St.
Traders work on the floor at the New York Stock Exchange in New York, Tuesday, Oct. 4, 2022.   (AP Photo/Seth Wenig)

Stocks rose sharply again on Wall Street Tuesday and clawed back more of the ground they lost in a miserable several weeks. The S&P 500 rose 112.50 points, or 3.1%, to 3,790.93. The benchmark index has been rallying since hitting its lowest point of the year on Friday to close out a September slump. The Dow Jones Industrial Average rose 825.43 points, or 2.8%, to 30,316.32. The Nasdaq rose 360.97 points, or 3.3%, to 11,176.41. The Russell 2000 index of smaller companies rose 66.90 points, or 3.9%, to 1,775.77. Treasury yields continued to pull back from their multiyear highs.

Trading in Twitter was halted for several hours after the stock spiked in midday trading on reports that Elon Musk would proceed with his $44 billion deal to buy the company after months of legal battles. The stock resumed trading at about 3:40pm Eastern time, surging 22.1%, the AP reports. Cruise line operators were the biggest gainers among S&P 500 stocks. Norwegian Cruise Line jumped 16.7%, Royal Caribbean surged 17%, and Carnival gained 13.7%. The broad gains come as major indexes remain in a bear market after falling 20% or more from their most recent record highs.

The two-day rally is hitting markets as investors look for signs that central banks might ease up on their aggressive rate hikes aimed at taming the hottest inflation in four decades. Australia's central bank made an interest rate hike that was smaller than previous ones and that helped Australia's market jump 3.8%. It is a potentially positive signal for investors, along with the latest jobs data from the US. Investors in the US received potentially encouraging news from a government report on job openings that showed the number of available jobs in the US plummeted in August compared with July. It's a sign that businesses may pull back further on hiring and potentially cool chronically high inflation.

(More stock market stories.)

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