(Bloomberg) — The world’s richest man was all over the U.S. stock market on Monday.
revealing that there was bought a share of Twitter Inc., Elon Musk sparked the biggest rally in the social media platform’s stock since its debut in 2013, with nearly every other growth stock on par with those gains.
“Here’s a guy who just put a bunch of money to work in the market,” said Michael O’Rourke, chief market strategist at Jonestrading.
Sentiment was also buoyed by Musk’s Tesla Inc., whose shares rose 5.6% following posting deliveries. record during the first quarter that bolstered investor confidence that the company will be able to weather a series of disruptions.
© Bloomberg
Musk’s Twitter stake helped fuel a rally in social media stocks on Monday
The tech-heavy Nasdaq 100 stock index rose 2%, while an investment fund that tracks the social media sector gained more than 5%. Among the big gainers were Facebook parent company Meta Platforms Inc with a 4% gain and Snapchat parent Snap Inc. advancing 5.2%. Pinterest Inc. rose 10% and Twitter closed 27% higher at $49.97.
Musk took a 9.2% stake in Twitter to become the platform’s largest shareholder, a week following hinting it might revolutionize the social media industry. The stake is worth approximately $2.89 billion, according to market close on Friday.
Cathie Wood’s ARK Innovation ETF underscored the risk-taking mindset that Musk stoked on Monday. The fund that invests in fast-growing companies like Block Inc. and Teladoc Health Inc. rose 4.4%.
The moves added to a strong start for US stocks in April, the better month for the S&P 500 over the last 25 years.
Hopes are high that stocks will gain new momentum this month, even as U.S. companies begin to report the damage that highest inflation in decades has done to profit margins. Since 1997, the S&P 500 has averaged a 2.5% return in April, according to data compiled by Bloomberg.
original note:
Elon Musk Brings Money, and Some Oomph, to U.S. Stock Markets
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
