NEW YORK: Billionaire Elon Musk’s purchase of a major stake in Twitter boosted early trading on Wall Street on Monday, where shares mostly rose.
News that the Tesla founder has purchased nearly 73.5 million shares worth about $2.9 billion and equates to a 9.2% stake in the social media company he is with. is frequently beaten, sent Twitter shares up 21% shortly after opening.
Although the stake was relatively small and the company itself was not large enough to move the market on its own, the news supported the rise in the Dow and Nasdaq, analysts said.
Musk discloses 9.2% stake in Twitter, share price soars
“What the market is really reacting to is the timing of Musk’s buy and the assumption that this is an encouraging signal that longer-term investment opportunities may present themselves now. in former high-flying stocks,” Briefing.com analyst Patrick J. O’Hare said.
But the prospect of higher interest rates to curb inflation and the danger that could tip the world’s largest economy into recession continue to loom over markets, which are already worried about the impact of the Russian invasion of Ukraine.
About 20 minutes into the first trading session of the week, the tech-heavy Nasdaq Composite Index had gained 1.0% to 14,402.52, and the broad-based S&P 500 was up 0. .1% to 4,552.27.
The benchmark Dow Jones Industrial Average fell 0.3% to 34,705.44.