The three-day sell-off in US stock markets over inflation fears appears to have come to an end, with the Dow Jones and S&P 500 both gaining 1.3% and the Nasdaq climbing 0.7% as investors rotated back into ‘value’ names including industrials, financials and utilities companies.
These companies are expected to benefit from a full reopening of the US economy with central banks reiterating that inflation will be transitory in 2021.
Meanwhile, hope continues to grow that the world can quickly return to normal, with US unemployment claims falling to 473,000, a pandemic low.
Alibaba posts a loss amid revenue growth
Alibaba (NYSE: BABA), the owner of T-Mall and Ant Financial, which had its IPO delayed last year, reported a rare loss with the recent US$2.8 billion fine reversing its ~US$2.0 billion quarterly profit.
Despite the attention, the fintech reported a 50% increase in profit itself. Alibaba shares finished the day more than 6% lower.
US stock market movers
Here’s how other popular US stocks performed in Thursday’s session.
- Peloton (NASDAQ: PTON) up 6.7%
- Apple (NASDAQ: AAPL) up 1.8%
- ALphabet (NASDAQ: GOOGL) up 1.3%
- Tesla (NASDAQ: TSLA) down 3.1%
- Atlassian (NASDAQ: TEAM) down 5.1%
- Twilio (NASDAQ: TWLO) down 5.2%
- JD.com (NASDAQ: JD) down 5.9%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is tipped to follow Wall Street higher when the market opens on Friday. For all the latest, check out Rask Media’s ASX 200 morning report.
