(Bloomberg) The richest man in the world was all over the US stock market on Monday.
By revealing that he had purchased a stake in Twitter Inc., Elon Musk triggered the biggest rally in shares on the social media platform since its debut in 2013, with almost every other growth stock on a par with those gains.
“Here's a guy who just put a lot of money to work in the market,” said Michael O'Rourke, chief market strategist at Jonetrading.
The sentiment was also driven by Tesla Inc. of Musk, whose shares rose 5.6% after posting record deliveries during the first quarter that reinforced investor confidence that the company will be able to overcome a series of disruptions.
The Nasdaq 100 heavy technology stock index rose 2%, while an investment fund that tracks the social media sector gained more than 5%. Among the major advances were Facebook's parent company Meta Platforms Inc with a 4% gain and Snapchat's parent company Snap Inc., advanced 5.2%. Pinterest Inc. rose 10% and Twitter closed 27% higher at $49.97.
Musk acquired a 9.2% stake in Twitter to become the platform's largest shareholder, a week after hinting that it could revolutionize the social media industry. The share is worth approximately US$2.89 billion, according to the market close on Friday.
Cathie Wood's ARK Innovation ETF underscored the risk mindset that Musk stoked on Monday. The fund that invests in fast-growing companies such as Block Inc. and Teladoc Health Inc. rose 4.4%.
The moves added to a good start for US stocks in April, the best month for the S&P 500 in the last 25 years.
There is high hope that stocks will gain new momentum this month, even as US companies begin to report on the damage caused to profit margins by the highest inflation in decades. Since 1997, the S&P 500 has averaged a return of 2.5% in April, according to data collected by Bloomberg.
Original Note:
Elon Musk Brings Money, and Some Oomph, to U.S. Stock Markets
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