A brief decline in stocks was short-lived as technology companies rallied, driving a surge in major indices. The US consumer confidence report, which showed a weaker-than-expected reading, initially sparked losses but was soon overcome by gains from megacap stocks.
Tesla Inc. and Nvidia Corp. led the charge, with their combined gain exceeding 1%. This rebound helped to boost the “Magnificent Seven” megacaps, despite thin trading volume. Experts attribute this trend to oversold conditions in equities, which may lead to a Santa Claus-style rally later this year.
Notably, the S&P 500 added 0.3%, while the Nasdaq 100 rose 0.7%. The Dow Jones Industrial Average, however, slid 0.1%.
Separately, corporate news saw MetLife Inc. agreeing to buy PineBridge Investments’ assets outside of China, Xerox acquiring Lexmark International Inc., and Aviva Plc buying Direct Line Insurance Group Plc for roughly £3.7 billion.
In the automotive sector, Honda Motor Co. and Nissan Motor Co. announced a historic merger in an effort to counter competition from China’s growing industry.
Source: https://finance.yahoo.com/news/asian-stocks-eye-cautious-gains-223501752.html