The Dow Jones index rose 0.63% to 33,926.74 points, the Nasdaq technology index rose 1.65% to 13,555.67 units, and the expanded S&P 500 index gained 1.15 to 4,378.41.
“US stocks rallied after good data on the US economy gave a lift to the consumer sector, while investors again pointed to (the) artificial intelligence (sector),” Oanda’s Edward Moya summarized.
New home sales, household confidence, durable goods orders: many indicators showed Tuesday that “the US economy is still functioning,” the analyst added in a note.
For Adam Sarhan, of 50 Park Investment, “it is clear that the ‘bulls’ (investors who bet on a bull market) acted today” Monday.
“We have reached the end of the month and the quarter,” a time when investors begin to “clean out their portfolios” and buy “after the recent decline,” continued the analyst, questioned by AFP.
“It’s a sign that the market is heading to the upside,” Sarhan added.
Technology favorites rose again, with Nvidia gaining 3.06%, Meta 3.08%, Tesla 3.80%, Intel 2.28% and Microsoft 1.82%.
Instead, US electric pickup truck manufacturer Lordstown Motors filed for bankruptcy and will bring Taiwanese Foxconn to court, accusing it of breaking its commercial and financial promises.
Shares of the group created in 2018 fell 17.18% to $2.29.
Foxconn, the main supplier of the American Apple, plays a key role in the assembly of the iPhone and other products of the main international brands. As part of its diversification, the group has turned to the electric vehicle sector, which it intends to transform into a pillar of its development.
In this context, Foxconn had bought its vehicle assembly plant in Ohio (northern United States) from Lordstown in May last year.
With this deal, Lordstown had “agreed to cede its most valuable assets to Foxconn,” the automaker argued, “in exchange for an assurance that Foxconn would support the development of Endurance trucks.”
However, this did not prosper because the Taiwanese group “had no intention of fulfilling its commitments,” the US company said.
Foxconn denied the accusations in a statement, saying it has “maintained a positive approach” to Lordstown to help it with its financial difficulties and that it intends to continue to seek “a satisfactory solution” to the parties.
On Monday, Wall Street fell weighed down by the large technology firms: the Dow Jones lost a marginal 0.04% closing at 33,714.71 points, the Nasdaq fell 1.16% to 13,335.78 units, and the S&P 500 fell 0.45% to 4,328, 82.
For Wednesday, investors await statements by the president of the Federal Reserve (Fed, central bank), Jerome Powell, in a forum organized by the European Central Bank (ECB) in Sintra, Portugal. Powell will also speak in Spain on Thursday.
Among Monday’s stocks, Tesla, downgraded by Goldman Sachs, fell 6.06% to $241.05, dragging the Nasdaq.
Most of the big names in the technology sector also continued to fall, such as Alphabet (Google, -3.19%), Meta (Facebook, -3.55%), or Microsoft and Netflix that lost almost 2%.
Nvidia, the darling of the artificial intelligence industry, shed a strong 3.74% to $406.32.
The Pfizer laboratory lost 3.68% after announcing that it was stopping the development of an experimental drug against obesity, which would seem to have bad repercussions on the liver.
