The Dow Jones Industrial Average rose 466.36 points, or 1.47%, at 32,196.66, the S&P 500 rose 2.39% at 4,023.89, and the Nasdaq rose 3.82% at 11,805.
However, the stock price of Twitter Inc. fell more than 10 percent after Tesla Chief Executive Elon Musk announced it would suspend talks to acquire Twitter. Until he gets more information about the number of fake accounts on Twitter.
If Mr Musk decides to cancel the Twitter acquisition deal He will have to pay Twitter a $1 billion release clause.
My Musk announced in April that He intends to buy Twitter for $44 billion, or about $1.5 trillion, and his first mission is to wipe out “spam bots” from Twitter.
Twitter previously assessed the account as spam. or accounts that are bots account for less than 5% of all accounts Musk wants Twitter to confirm the information before he can move forward with negotiations.
Despite Wall Street’s gains today, three major indices are expected to drop this week. The Dow has fallen more than 2% since the start of the week, while the S&P 500 and Nasdaq are down 3 percent and 4 percent, respectively.
The U.S. Senate voted on Wednesday to name Federal Reserve Chairman Jerome Powell for a second term.
Powell, however, has a difficult task ahead of him to stave off inflation, at its highest in 40 years, without crippling the US economy from recession. After shrinking 1.4% in 1Q22
Powell admits he cannot offer guarantees that the US economy will slow down gradually or soft landing as the Fed raises interest rates to curb inflation.
US Treasury Secretary Janet Yellen expressed confidence that The Fed can curb inflation without causing a recession.
Ms Yellen said Factors that will keep the US from facing a recession include a strong labor market and banking sector, household finances. and interest rates remain low.
Investors expect the Fed to raise interest rates by at least 0.50% at two more monetary policy meetings, in June and July. After the Fed raised interest rates by 0.50% in May for the first time since May 2000. And it was the biggest interest rate hike in more than 20 years.
In addition, the Fed is preparing to reduce the size of the balance sheet. (Quantitative Tightening : QT) which will start operations from June. The Fed will reduce its balance sheet by $47.5 billion a month. And after three months, the Fed will increase the balance sheet reduction to $95 billion/month.