Elon Musk says Twitter deal ‘temporarily on hold’
Elon Musk said Friday that his planned $44 billion purchase of Twitter is “temporarily on hold” pending details on spam and fake accounts on the social media platform, another twist amid signs of internal turmoil over the proposed acquisition. (May 13)
NEW YORK (AP) — Stocks gained ground on Wall Street Friday morning, but not enough to claw back all the losses the market has taken in this volatile week.
The S&P 500 rose 1.9% but it’s still on track for its 6th straight losing week, something that hasn’t happened since 2011. The Dow Jones Industrial Average rose 1.2% and the Nasdaq rose 3%.
Bond yields rose significantly. The yield on the 10-year Treasury rose to 2.93%.
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Technology stocks led the gains. Apple rose 2.1% and Microsoft rose 2%. The sector has been behind much of the broader market’s volatility throughout the week and has been slipping overall as investors prepare for higher interest rates, which tend to weigh most heavily on the priciest stocks.
WILL TRUMP RETURN?: Elon Musk said he would let former president Donald Trump return to Twitter
But Twitter fell 9.8% after Tesla CEO Elon Musk said he was putting his deal to acquire the social media company on hold. Tesla rose 5.3%. Retailers and communications companies also made solid gains. Amazon jumped 3.6% and Google’s parent rose 2.3%.
Will the Fed raise interest rates again?
Despite Friday’s gains, markets have been slumping as investors adjust to the highest inflation in four decades and the higher interest rates the Federal Reserve is using to fight it. The Labor Department issued reports this week that confirmed persistently high consumer prices and wholesale prices that affect businesses.
Businesses have been struggling to keep up with increased demand for a wide range of products and goods amid supply chain and production problems. They’ve been raising prices on everything from food to clothing, which has been putting pressure on consumers and raising concerns about a pullback in spending and slower economic growth.
INFLATION SLOWING: Will price-weary shoppers get a bit of relief?
BIDEN AND INFLATION: Blaming the Republicans isn’t a winning strategy, analysts say
The Fed is attempting to temper the impact from rising inflation by pulling its benchmark short-term interest rate off its record low near zero, where it spent most of the pandemic. It also said it may continue to raise rates by double the usual amount at upcoming meetings. Investors are concerned that the central bank could cause a recession if it raises rates too high or too quickly.
Meanwhile, China’s decision to lock down major cities amid worries about a COVID-19 resurgence have further strained supply chains and Russia’s invasion of Ukraine raised already high energy and food costs globally.
U.S. crude oil prices rose 2.5% and are up more than 40% for the year.
Investors have also been focusing on the latest round of corporate earnings to gain more insight into how inflation is impacting businesses and consumers. Several major retailers will report their results next week, including Walmart, Target and Home Depot.
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