The Daily Times Newspaper

Cloud Company VMware Rises on Recovering Wall Street

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VMware made a price jump on the stock exchanges in New York on Monday due to takeover speculation around the cloud company. The mood on Wall Street was positive after recent price pressures fueled by concerns about high inflation.

 

Comments by US President Joe Biden about a possible elimination of tariffs on Chinese goods, which were introduced under his predecessor Donald Trump, sparked optimism. Biden would like to push inflation with the move.

In addition to the war in Ukraine, geopolitical tensions flared up between Washington and Beijing. Biden stated that the United States is willing to use force to defend Taiwan against China. He calls that a promise that the country has imposed on itself. China does not recognize Taiwan as a separate state and sees it as part of China. Beijing has previously called US support for Taiwan dangerous.

Shortly after opening, the Dow-Jones index rose 1 percent to 31,575 points. Last week, the Dow lost for the eighth consecutive week of trading. That is the longest losing streak in less than a hundred years. The broad S&P 500 climbed 0.7 percent to 3927 points. The Nasdaq gained 0.1 percent to 11,369 points. The tech gauge suffered a loss for the seventh trading week in a row last week. That is the longest losing streak since the bursting of the internet bubble at the turn of the century.

VMware added more than 18 percent. According to Bloomberg news agency, chip and software maker Broadcom is in advanced talks to acquire the cloud company. VMware had a market value of approximately $40 billion before the takeover speculation. The much larger Broadcom, which has a market capitalization of more than $220 billion, fell 5 percent. Michael Dell, the founder of the computer company Dell, has a 40 percent stake in VMware.

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